As Bermuda Homes for People is no more, Government wants BLDC to take over the project ? and as only 35 people have put down deposits on market-price homes, the taxpayer may ultimately have to foot the bill for 98 lottery homes.

Legally speaking, Government is able to order the Bermuda Land Development Company Ltd. (BLDC) to build Harbourside Village, however, it could end up costing the taxpayer more.

The Base Lands Development Act 1996 states that Bermuda's Premier may, from time to time, designate a Minister to be responsible for the BLDC.

Section 12 of the 1996 Act states this Minister may give direction to BLDC if he considers it to be in the public interest for him to do so, and the company shall carry out any such direction.

The Minister can make BLDC provide any property or service they can to anyone, however, Government must pay BLDC a price determined by the Government after consultation with the Company.

And a copy of BLDC's Business Plan for the fiscal year ending March 31, 2005, states the Company's financing strategy can only be in debt of $5 million.

"The company has no debt and and from a taxpayers point of view it is arguable that any material borrowing should be undertaken by the Government of Bermuda, or under its guarantee," it said.

"Taking the Budget as it stands it can be seen that by the end of the year, the Companies cash reserves will be depleted," it said. "The Company is mindful of not taking unnecessary risks."

The Department of Communication and Information was asked who the Minister was is responsible for BLDC under section 7, subsection 3 of the 1996 Act.

But a response was not forthcoming by last night.