A cement crisis on Bermuda has been averted as a result of "countless hours" of negotiations following the shock announcement last month that the Island's main cement supplier was pulling the plug.

Construction bosses can now rest easy, it is claimed, knowing there will not be a shortage of cement while Lt. Col. David Burch is on watch as chairman of the West End Development Company (Wedco).

The Government quango has stepped in to jointly run the cement supply operation at Dockyard and prevent it from shutting down at the end of the year following current operator the Bermuda Cement Company's announcement last month, in acrimonious circumstances, that it was winding up its Dockyard operation on December 31.

A difficult situation for the Island appears to have been avoided, at least temporarily, following negotiations involving Wedco and international cement industry giant Cemex.

The two have agreed to jointly operate the cement operation at Dockyard for a period of up to two years while bids are accepted for a long-term operator to run the show.

As a result of "foolishly bumbling along for seven As a result of "foolishly bumbling along for seven months thinking we had an agreement" the Island was left in a precarious position when the Bermuda Cement Company made its shock decision to quit, according to Lt. Col. Burch.

"Countless hours have been spent over the past 26 days by Wedco, Cemex and our attorneys seeking a resolution to this dilemma ? we think we have arrived at a satisfactory interim solution," said Lt. Col. David Burch. Speaking at a Press conference in Hamilton, he retraced the events that led up to the decision by the Bermuda Cement Company to shut down its 40-year-old operation.

The company had been seeking to renew its lease at Dockyard and in January agreed with landlord Wedco that it could continue at its current facility for a further two years providing it built a new plant and facility using a dome storage system at South Basin. Once the new facility was opened the lease would be extended for 20 years, the rent would increase by two-and-a-half percent of gross revenue or $100,000, whichever was greater, the current unsightly silos would be dismantled and finally not less than 20 percent of the company's shares would be offered on the Bermuda Stock Exchange.

That agreement was declared null and void last month by Bermuda Cement Company president Jim Butterfield, who said the company intended to cease operations at Dockyard from the end of the year because the conditions of the deal made it uneconomical to continue.

A later approach by the company offering to continue running the cement operation on its own conditions was rejected by Wedco. Speaking to at the time Mr. Butterfield described the treatment of his company by Wedco as "diabolical" and claimed his business had been driven out because it would be uneconomical to build a new plant at South Basin and also mentioned a suspected $200,000 bill simply to clean up the new site before any construction could even begin.

As a result a big question mark was thrown over the continuing supply of cement to the Island's construction industry in 2006 and beyond.

"Currently, there are rumours circulating amongst the construction industry regarding the possibility of the lack of cement or a potential price increase because of the current situation," Lt. Col. Burch said yesterday.

"Let me be clear, whilst there are various factors that could contribute to an increase in the price of cement, irrespective of the current situation, the rising cost of fuel worldwide is one factor that most likely will result in an increase in the cost of all imports into Bermuda.

"The entire board of Wedco are fully cognisant of these and other factors and will do all within our power to ensure that there is neither an interruption in the supply nor an increase in the cost of cement."

When asked what will become of the staff connected with Bermuda Cement Company's operation at Dockyard, Lt. Col. Burch said no direct talks had yet been held, but he hoped a way would be found for them to continue to work there under the new management as they had the expertise to ensure the smooth running of the cement depot. He said it was in the interest of Cemex to buy the plant and keep the employees.

Mexican industry giant Cemex already supplies cement to the Dockyard facility and it is envisaged it will continue to do so once a new permanent operator has been chosen.

Asked if Wedco had driven out Bermuda Cement Company by imposing its lease requirements, Lt. Col. Burch said: "Even Stevie Wonder could see that we have been more than fair."

He said there had been approaches by seven parties interested in providing cement to the Island. All seven are being invited to make a formal proposal to run the cement operation in the future.was unable to contact Bermuda Cement Company president Mr. Butterfield at the time of going to press.