WORKS & Engineering Minister Alex Scott said yesterday that plans to develop Morgan's Point put forward by developers BEAM were not necessarily dead in the water, despite having been rejected by his ministry last month.

BEAM's plans to build a residential development, golf course and marina on the site of the former US Naval Annex in Southampton, had fallen short of Government requirements on several scores, said Mr. Scott. Most significantly, the Minister said BEAM had proposed that Government should finance the bulk of the clean-up necessary to rid the site of hazardous waste left behind by the American military.

"The proposal did not succeed because we do have environmental concerns that the proposal did not address," said Mr. Scott.

"BEAM may tell you that they addressed the environmental aspect, but in the proposal they made to ourselves it was left for Government to find ways to fund the remediation operation.

"If it's at all possible, we like to find ways of avoiding dipping into the public purse - unless there is a way of spending one dollar on the clean-up and getting ten dollars back on the development that can be signed and sealed. But at this time we feel it's in the best interests of the people of Bermuda to conclude our discussions with BEAM."

Mr. Scott added there were alternative proposals for the site from several other groups, but if BEAM came back with revised plans, they would be considered.

Mr. Scott hinted that his focus was now on cleaning up the site. "We believe this site will be a more valuable piece of real estate for the people of Bermuda if it is in pristine condition," said the Minister. "Once the environmental challenges have been addressed, the deal struck with any developer could be far more advantageous to the people of Bermuda.

"There be someone out there who will make a proposal including assistance with the clean-up and it may be an offer that is too good for the Government to refuse, or which at least warrants serious consideration."

The waste on the site includes asbestos, heavy metals and 500,000 gallons of jet fuel in Bassett's Cave. Environmental consultants have estimated it will cost tens of millions to clean up. And last week, Shadow Environment Minister Kim Young suggested the pollutants were a threat to the island's water supply.

Mr. Scott said the Government was waiting for clarification of Britain's offer of technical support in the clean-up, an offer made by the UK's junior Minister for the Overseas Territories, Baroness Amos, on a visit to the island in July.

In a press conference at that time, the Baroness categorically stated that the UK would not pay for the clean-up operation, but she said technical support would be offered.

"Britain has said they are prepared to provide technical assistance and support and because we would otherwise have had to go out and pay for that, this offer will be of financial benefit to the island," said Mr. Scott, adding that the Government would be seeking clarification of exactly what help was on offer.

Mr. Scott had previously argued in the House of Assembly in June that the UK might have a responsibility to fund the clean-up, as they had negotiated the baselands agreement with the US which made no provision for clearing the mess.

Alan Burland, of the BEAM Group, said yesterday: "I have no comment to make at this time because of further discussions we are having with the Government as we conclude our close-out negotiations."

Mr. Scott said: "BEAM's proposal fell short of what the Government wished for that site. Mr. Burland and I have worked towards some kind of amicable conclusion to our discussions so I will stop short of going into detail."