A cement crisis is looming larger with news that a Government bid to temporarily nationalise the bulk cement supply operation involves an offer price far below the $1 million asking price for the Bermuda Cement Company.

Company boss Jim Butterfield views a Government sale unfavourably and warns there will be no cooperation if a hostile take-over is attempted.

While a call for "time-out" to cool the situation and find a satisfactory solution has been made by Opposition shadow Works and Engineering spokesman Jon Brunson.

Adverts for the sale of equipment and parts from the Dockyard facility will start running from tomorrow as planned by the cement company. However, a positive sign has also emerged with four other parties, including the Construction Association of Bermuda, showing an interest in buying the company.

Throughout yesterday radio talk shows on the Island buzzed with discussion about who is holding who to ransom over the cement crisis.

Government quango the West End Development Corporation ensured the cement company would crash into a virtually worthless entity at the end of this year when, two weeks ago, it told the firm its 43-year tenure at the Dockyard location will end on December 31.

Knowing this, Government offered on Tuesday to buy the company's tangible assets, its equipment and supplies, for an undisclosed amount thought to be significantly lower than the $1 million the company would seek by selling up as a going-concern.

Cement boss Jim Butterfield said: "We've had four other parties who are asking about buying the company's shares and seeing if they can get some relief on the lease.

"Our shareholders want to get out and not hurt the industry by doing so."

Last night the Construction Association of Bermuda was holding its annual meeting and the issue was being discussed.

The Association has shown an interest in the future running of the company, Mr. Butterfield said.

"If the Association bids we would feel good about it. Who better to be the gatekeeper of the cement supply?" he commented.

Wedco had told the cement company to demolish its twin silo plant and build a new facility 300 yards away, to be given up to Wedco after a new 21 year lease expired, while making 20 percent of its shares available "on the street".

When the cement company said the cost of a new facility would be $12 million to $15 million — double original estimates — and therefore uneconomical, Wedco told the company its current lease would not be renewed beyond the end of the year.

That was two weeks ago. If no new operator is found the plant will fall silent on December 21 as the cement company sells off or removes its equipment and supplies before handing back the site ten days later.

Such a scenario would plunge Bermuda into a construction sector crises as major projects which rely on daily bulk supplies of cement will be forced to start laying off workers if supplies dry up for more than ten days, according to construction leader Alex DeCouto.

Opposition candidate Mr. Brunson viewed the crisis as proof of Government "spinning out of control."

He said: "At the last minute it has decided to nationalise the cement industry, because its reckless actions endangered construction industry jobs."

Mr. Brunson dismissed Government's plan to buy the plant equipment and supplies and sell on to, as yet, unknown people to run the enterprise. Instead, he called on a selection process that is "open, transparent and fair".

And the United Bermuda Party election candidate said it was not right for Government to spend "the people's money" without the agreement of Parliament.

"The Premier is playing fast and loose with long-standing rules. The UBP calls for a time out. A time to step back.

"We ask all parties to stand down until after the election when the public interest can be properly considered for more clear-headed and sensible decision-making."

Bermuda Cement Company president Mr. Butterfield puts the book value of the company in an "arms-reach" sale deal at $6 million, but would expect a realistic asking price of around $1 million for the company given its present situation, something that again hinges on whether a new buyer can secure an extended lease for the current site.

Asked if the company would sell to Government for $1 million, Mr. Butterfield said that would depend on what other proposals existed, although he would prefer a deal with a neutral party.

The Bermuda Cement Company is due to hold its annual meeting next Monday.