Housing Minister Col. David Burch hit back yesterday at accusations Government is attempting to cover up the "Enron of Bermuda" Bermuda Housing Corporation (BHC) scandal.

And Government will continue its hard line on foreclosures and evictions, he added, saying people failing to pay their housing debts hamper BHC's ability to help other families in need.

Col. Burch spoke in the Senate, saying he felt compelled to make his statement in light of repeated allegations against the Ministry of Housing in the House of Assembly and reported in local media.

Shadow Housing Minister Michael Dunkley slammed Government's handling of housing in general and the BHC scandal in particular during last Wednesday's budget debate.

Wondering if Government was still hiding something regarding the BHC, Mr. Dunkley called for a progress report on the clean-up of the "Enron of Bermuda", calling the lack of progress reports a "cover up".

He poured cold water over Col. Burch's widely-applauded statement not to ask for more money for BHC, noting that in light of massively increased financial assistance from Government such a gesture was "not so noble .. Typical political tricks intended to fool the voter just before an election".

Mr. Dunkley also accused the Government of taking a "cold and callous" stand on evictions. "Under the Smith Government the approach is to evict if all is not paid up immediately," he said.

"This policy cannot work. These people need help in learning how to allocate finances. If they are evicted the BHC loses the money owed and a family is on the streets. Then whose problem is it?"

Col. Burch hit back at Mr. Dunkley's accusations in the Senate, saying: "From the outset I indicated the course of action I intended to take. During this period we have done just that and will continue to do so."

Outlining the recurring criticisms against his Ministry, Col. Burch said they were: "One - that we continue to participate in a cover up. Two - that funds to the Corporation have steadily increased under this Government's tenure. Three - that we are putting people out on the street by carrying out evictions."

Regarding Mr. Dunkley's allegations of a BHC cover up, Col. Burch said: "I fail to see how we can be legitimately accused of this . I have repeatedly stated that I would do nothing to compromise the criminal investigation by making any public utterances, and, certainly if I did, the very same Opposition critic would then be accusing us of deliberately jeopardising the investigation.

"Let me therefore state the obvious: we look forward to the conclusion of the criminal investigation as that will cause us to carry out further actions."

Labelling Mr. Dunkley's accusations as "mischievous at best and the height of deceit at worst", Col. Burch added: "Everyone knows that it is not within our purview at all and further that it would be quite improper to attempt to exert any influence over the Police.

"What we have done and will continue to do is fully cooperate with their investigation."

As for Mr. Dunkley's observation that funding for the BHC have increased under the PLP's tenure, Col. Burch said: "A true statement . but let us look at the reasons for this."

Claiming that staggering arrears owed to the BHC are the result of the former UBP Government's failure to collect such monies, forcing the PLP Government to increase funding to BHC for "operational expenses", Col. Burch wondered what kind of political game the Opposition thought he was playing by carrying out evictions in an election year.

"Might it have something to do with `this is the right thing to do' - something the previous Government was entirely unfamiliar with?" he asked.

Pointing out that BHC is presently owed over one and a half million dollars in arrears from rents and mortgages, Col. Burch said evictions were a necessary evil.

"Following a review of the entire mortgage portfolio, we agreed to immediately carry out foreclosure proceedings on the 11 worst cases," said Col. Burch.

"As I have previously stated, Government cannot in all good conscience put families with children out on the street." BHC is however putting such families up in a rooming house until their arrears can be sorted and they can graduate to apartment status once more.

"We regret having to take these tough decisions . We have to recognise the net result of such arrears is to restrict the BHC's ability to assist other families.

"Clearly, we would be able to assist a far greater number of families in need if those who have already received assistance met their contractual obligations."

Admitting the truth that Government is putting people out on the streets with such evictions, Col. Burch again asked to look more closely "at the reality of this assertion.

"Arrears in both the rental and mortgage sectors are out of control," he said. Evictions require people to be responsible for their own actions or, in a few cases, pay the price for their inaction, he added. "I am not in the least moved by the misguided and disingenuous criticism of the Opposition."

Promising to continue to report progress on the BHC's efforts, Col Burch finished: "I leave it to the people of Bermuda to decide whether the actions taken thus far at the BHC are the correct ones and I venture to say that, from the wide cross-section of support expressed to me personally from all sides of the political spectrum, I err on the side not of caution, but of right."