The British Government is to look into alternative sources of funding for disposing of the Island's asbestos waste, according to a joint statement from Premier Alex Scott and the UK's Overseas Territories Minister Bill Rammell.

“Given that the UK was not able to pay for the asbestos removal, Mr. Rammell undertook, at the Premier's request, to look into other possible sources of funding,” yesterday's release stated.

Mr. Scott attended the British Labour Party's annual conference in Bournemouth, England and the release summarised the outcome of last week's first meeting between the pair.

The Premier was assured that Britain was not seeking “new powers” over its colonies, according to the release.

“But there was a need for the FCO and the Overseas Territories to work more closely together to ensure high standards, given their mutual responsibilities and UK contingent liabilities,” it continued.

“To this the Premier was most assertive of Bermuda's self-governing status and high standards of governance. Mr. Rammell agreed and assured the Premier that he considered standards of governance were high in Bermuda.”

Mr. Rammell is reported to be concerned about the impact of Hurricane Fabian but impressed with how fast Bermuda is recovering from the storm.

And he confirmed Prince Edward's visit to the Island later this month.

The Bermuda Government is grappling with how to dispose of hundreds of containers of asbestos.

Much of the asbestos was left here by the United States Navy when it vacated the former Baselands.

A deal to terminate the lease for the properties was agreed between the United Kingdom and the United States but neither of the two powers made any provision, or commitment, to clean up tons of waste - which besides asbestos, included toxic substances such as heavy metals and jet fuel - left behind by the Americans.

Bermuda has been concerned at the cost of cleaning up the toxic stockpile, and the potential liability should the asbestos cause problems in another country if shipped off the Island.

Mr. Scott has often suggested that Britain, as the colonial power which initiated and terminated the bases agreement, could be liable for all costs associated with disposing of the asbestos.

For its part, Britain has only agreed to pay for technical assistance in the form of a study of Bermuda's asbestos disposal problem.

“Mr. Rammell confirmed that the UK has received Bermuda's comments on the terms of reference for a scoping study on asbestos disposal which would make recommendations for the best method of removal,” the joint statement continued.

“He also said that the FCO were currently inviting consultants to tender and would contact the Bermuda Government soon on the consultant selection process.”