The question of who will foot the bill for a massive environmental rescue mission at the former US bases is still an open one, according to Government.

But Minister of Works and Engineering Alex Scott said yesterday the Bermudian tax payer may not be burdened with the cost - estimated to be at least $50 million - as Government is considering having a potential land developer take it on, or, passing the bill on to the UK.

"The money doesn't have to come out of the pocket of the taxpayer," he said yesterday. "A number of companies are interested in developing the land and a portion of their proposals address the clean-up."

The Minister spoke out in response to Opposition claims that taxpayers will have to eat the multi-million dollar shortfall between the $50 to $60 million clean-up and the $11 million Government received from the Americans last week as the 1941 lease agreement for the bases was terminated 38 years ahead of schedule.

"Really Government has given every Bermudian family of four a $6,000 bill for the environmental clean-up," Opposition Leader Dr. Gibbons said yesterday.

Dr. Gibbons said Government should never have given responsibility for negotiating with the Americans over to the UK.

"We believe the deal we got was a lot worse than one than we could have gotten if we held on to (the negotiations)," he said.

"With the Premier signing off on what we see as a very bad deal, the responsibility for cleaning up the old bases is fully on Bermuda."

The Americans vacated bases at Southside and Morgan's Point in 1995 and serious environmental damage was discovered to have been left behind at both locations.

Cleaning Morgan's Point is expected to be particularly costly, as raw sewage was pumped into the caves under the land for decades and thousands of gallons of oil, believed to have leaked from holding tanks, is pooled with the human waste.

A UK-based environmental assessment team which surveyed the caves in 2000 said they were "revolted" and "stunned" by the amount of damage that was done.

Mr. Scott - who is responsible for the bases - told The Royal Gazette Government may give concessions to a site developer for taking on the environmental clean-up, by reducing the price of the land, for example.

Government is reportedly very near a deal with BEAM Limited to develop the 250-acre property as a luxury leisure complex with golf, high end housing and a marina.

The $300 million development has been held up for years by discussions related to cleaning up the environmental damage.

Mr. Scott said he could not speak to the specifics of discussions with the company at the moment but Government and BEAM will make a joint statement soon.

If the developer does not take on the cost of clean-up in exchange for concessions, Government might turn to the UK for the money, he added.

One could argue that the UK should take responsibility, Mr. Scott said, since they negotiated the termination deal.

"The fact is the UK signed the agreement," he said.

"One could say Bermuda is a colony and the UK signed both the original agreement and the termination.

"The Brits have a responsibility with regard to clean up of the bases if they didn't negotiate a favourable agreement for Bermuda.

"They saw the environment needed to be cleaned up and surely a case could be made that the UK should be prepared to take responsibility here."

He also suggested the clean-up may not be as costly as the Opposition claim.

Mr. Scott said the study the UBP cite, which gave a $50 to $60 million price tag for correcting the damage, was not necessarily accurate.

The UBP were using that figure as part of their discussions with the Americans while they were in power, he said, and may have been pushing a high figure for negotiation purposes.

Technology has also changed much since that study was done in 1997, he added, and attacking the problem with aggressive chemicals is more feasible and economical today.

Despite the Opposition criticisms, Mr. Scott said the PLP had far more success on negotiating a deal with the US than the UBP ever did.

"The UBP said they wouldn't have taken the deal and would have kept negotiating but they had their opportunities," he said.

"They sent envoys up there and it was all for nought."

And he suggested that becoming embroiled in a hostile stand-off with the US would have compromised relations one of Bermuda's most important allies.