Government has found a potential buyer for the Bermuda Cement Company – itself.

The proposal to effectively nationalise the Island's cement business is being viewed by the construction industry with a mixture of concern and a degree of hope that a potentially disastrous crisis might now be averted.

But last night the right for a Government that is now in a caretaker position until next month's General Election to enter into such a major undertaking was under scrutiny.

Whether Government had an actual plan or not when "time up" was called on Bermuda Cement Company's tenure at the Dockyard bulk cement plant two weeks ago, it has now.

With three days left before the cement company was expected to start advertising its equipment for sale, Government yesterday put in a bid to buy the entire business.

The sale price remains undisclosed and, as this newspaper went to press, there was no word on whether the deal will be accepted.

Premier Ewart Brown said Government has through its lawyer offered to buy the entire business, lock, stock and barrel.

If the offer is accepted, it intends to take over guardianship of the Island's only bulk cement supply plant for an open-ended period while what it terms as "a new entity" of interested parties is formed with the intention of eventually buying the company from Government.

"Assuming the principal owner keeps his word on his company's value, the Government will purchase all cement processing equipment and all supplies as he has publicly requested," said Dr. Brown.

He said future ownership of the new company would involve an arrangement that safeguarded 20 percent of the company equity "to allow everyday Bermudians to buy a stake in the company."

And according to the Premier the proposed plan would ensure the Island could not again have its cement supply "held to ransom" by a company.

Alex DeCouto, president of the Construction Association of Bermuda, was personally informed of the move by the Premier.

He said afterwards: "The big problem is the interruption in supply of cement. Assuming this deal is worked out that may be avoided.

"At this point there is uncertainty. It is all still a bit fuzzy and I'm not comfortable with what is effectively a nationalising of the industry."

Mr. DeCouto wondered why the cement company, which appeared to be prepared to continue to run the plant where it is, had been discarded even as a temporary solution.

"I'm not sure what has happened to that avenue. At least the specifics of a solution have come out. Someone has thought out what is going to happen to the operation.

"It appears they have come up with a plan, but the deal still has to be agreed."

The legal right of Government, which is effectively a caretaker Government until the outcome of the December 18 General Election is known, to commit public funds in this way is under scrutiny.

A document on the guidance on caretaker conventions issued by the Australian Government this year has recently been handed out by Public Safety Minister David Burch.

The document states that caretaker governments have followed 'caretaker conventions' so as not to bind or limit the freedom of action of an incoming government, and this includes avoiding entering major contracts or undertakings.

Last night the Opposition United Bermuda Party was taking a careful look at what has been proposed regarding Government's bid for the cement company.

UBP shadow Works and Engineering minister Jon Brunson said: "We have major problems with this government scrambling once again, at the last minute, to steer clear of another crisis of its own making.

"We have are very concerned that in mid-election the Premier is committing the people's money to the nationalisation of an industry. We are also disturbed as countries across the world are moving to free markets that Bermuda, under Dr. Brown's direction, seems to be moving the other way."

Bermuda's bulk cement supply crisis was triggered after an impasse was reached between the cement company and site landlord the West End Development Corporation over a request for the cement company to vacate and demolish the twin silo site and build a new facility nearby.

The cement company was also asked to make 20 percent of its shares available "on the street" to Bermudians.

When the company said it would cost too much to relocate – by its own estimates around $12 million to $15 million – it was told by Wedco on November 14 that its lease would not be renewed.

The cement company has previously said it would start advertising its plant equipment for sale as of Friday if no buyer has come forward, and intends to close the facility for good on December 21 in order to clear out its equipment before the lease ends on December 31.

Mr. DeCouto has warned that any interruption of bulk cement supplies would likely lead to job layoffs within the 1,500 workforce employed in major projects – a scenario that would start to take effect between ten days and two weeks after supplies dried up.

The construction industry currently employs more than 3,600 workers, although around half work on smaller projects that would be able to continue by using bagged cement.

Dr. Brown would not speculate on who might be involved in running the company in the either the short or long term.

It is not clear if a new operator will be asked to relocate from the current site and build a new cement plant nearby, as had been requested of the Bermuda Cement Company.

When asked Premier Dr. Brown said: "That will depend upon negotiations with Wedco. Once this purchase is done the table is clear and Wedco, through Minister (Dennis) Lister will conduct negotiations."