The rate of work at the Berkeley site is slow and the project's administrative structure has been found wanting by a foreign consultant brought in by the Government to examine the controversial project, Works Minister Alex Scott admitted on Friday.

But he said consultants HR Lubben, who came at the end of February, said the quality of work that had been achieved was good.

Mr. Scott, speaking in the House of Assembly, also said the Auditor General was wrong to urge Government to put back the completion date for the new Berkeley project, saying that if the contract date was put back, it could end up costing the taxpayer more.

Mr. Scott said some $32 million had been spent on the project so far and consultants HR Lubben, who came at the end of February ,had reported the rate of work was slow.

He said the administrative structure had been found wanting and the management protocol had left something to be desired, according to their report.

"They recommended to increase the rate of work on that site."

But headed: "The general thrust of their report was that the quality of work being done was good."

The Minister said there would be a fast tracking of the remaining building.

The Minister said the overseas firm had done the survey for $14,000 while local consultants had wanted to be paid more than $250,000 for the same job.

Mr. Scott said Auditor General Larry Dennis in his special report on the school project had urged Works and Engineering tell the Education Ministry the school would probably not be ready for much of the 2003/04 academic year.

"For the avoidance of doubt, Mr. Speaker, let me state that while members of the Ministry of Works and Engineering, members of the public and likewise the Auditor General himself have expressed grave concerns as to expected completion date of the project, Pro-Active Management Systems Ltd, is still contracted and duty bound by law to substantially complete this project by September 4, 2003," Mr. Scott said.

"The public should be made aware that should I or any other Cabinet colleague deviate from the contractual dates, we would by our statements potentially bind the Government to accept outstanding claims between ourselves and our contractors."

He said Government was committed to assisting any contractor on a Government project but it would not stoop to unethical means.

He said promising to deliver on an alternative date could have caused him "all sorts of embarrassment".

He said the Education Department had been working on contingency plans to ensure teens were not affected by any slips.

And he said Government would set up a financial scheme aimed at assisting young entrepreneurs who undertook responsibilities for future contracts, said Mr. Scott.

"When they want to tender fairly, as the Pro-Active Group did, they must be supported."He said he understood the politics of the daily cut and thrust between Opposition and Government but he said it was wrong to put out speculation and rumour which could threaten jobs.

"But when you bring the energy of your criticisms to the point where you endanger and are prepared to ruin a company, ruining young Bermudians, throw caution to the wind with facts, speculate. Spread rumour."

But he said Government was: "Unashamedly and unreservedly … we are trying to support the ProActive Group and other young Bermudians."He said it was about building a school but also about providing a learning experience for those who worked at the project and managed it.

He said there was a danger of Bermuda losing control of its construction industry, with even large firms relying on outside partners for financial support.

"Unless the local marketplace was going to be allowed to decide who won these contracts in a fair square competition for these tenders then slowly but surely the decisions for our construction industry would have gone off island. We had a watershed decision taken."

He said the Pro-Active contract had also been about saving the island's local industry.

Mr. Scott said the Works and Engineering department had generally been given a good review by the Auditor General.

He said this Government as with prior Governments "will continue to make decisions based on what the best interests of the general public".

He said social and political decisions would play a part.

Recently Mr. Scott said civil servants advised and cabinet decided on such projects and Government could award a bid to a firm that wasn't the highest bidder.

"That's the way CedarBridge was decided and that is the way every major capital project has been decided."He said the only thing Government had done differently from the last was to put Bermudians first.

The Minister responded to the Auditor's General doubts over the performance bond put by Bermuda Industrial Union offshoot Union Asset Holdings Ltd could be covered.

He said the BIU had a huge real estate portfolio of residential and commercial properties that generated significant incomes and were mostly debt free.

"The value of their real estate portfolio far exceeds the value of the Bond obligation."

He said the assets of the BIU were available to cover the obligation of Union Assets Holding Ltd.

He said the Government had kept in line with Financial Instructions and Code of Conduct and Conditions of Employment of the Government of Bermuda which dictate all financial activities but the Auditor General had behaved as if his office made the rules.

He criticized others for referring to the project as the Berkeley project and said Government always spoke of the "second senior school project".

Opposition Works and Engineering spokesman Erwin Adderley said someone on the new Berkeley site had told him that a retaining wall on the west of the property had been put up badly.

He said the mold had busted loose shortly after the concrete was poured but workers had continued to add to the wall and it was dangerous.

The Minister challenged Mr. Adderley to give him details about the wall and challenged him to produce an engineer's report.

Mr. Adderley said he was alerting the House to the matter and said an investigation should be conducted, especially after the death at Bermuda College recently after such a wall had collapsed.

He said: "It isn't up to me to produce an engineer's report."