The announcement that work will begin on low cost housing in Warwick without Government financing has left both Opposition parties with more questions than answers.

Yesterday UBP Senator Michael Dunkley said his party were concerned about the "confusing nature of the Government's commitment to building the project's residential component and the arrangement it has made to support project financing". And Bermuda Democratic Alliance Member of Parliament Donte Hunt questioned how the project could be called a public-private partnership.

Sen Dunkley also said his party doubted the hotel portion of the Grand Atlantic Resort Development, on the former Golden Hind land, would materialise.

Earlier this week Government announced construction on a 125-unit affordable housing complex on prime South Shore property would begin in four weeks. It will take more than two years to build all of the units but builder Gilbert Lopes predicted the first 21 would be available within 11 months. Construction of the three-star hotel component of the Grand Atlantic Resort Development is starting in six months according to Developer Larry Swenson.

He added that the project was "fully financed" by Butterfield Bank and that no public money would be spent on the project. The bank said it has given a loan to cover the acquisition of the 13-acre property and some of the housing development.

At the press conference Housing Minister David Burch said Government was not making a cash injection into the project. Mr. Swenson added Government was not purchasing any property from his company and that Bermuda Housing Corporation clients would be purchasing the homes once they are completed.

The statements this week differed from ones made last year in which the Premier said Government would be "simply buying the land" from the hotel for housing and that the developer "needs capital" while the Government "needs land to build affordable housing". At the time real estate experts estimated it would cost $25 million to purchase the plot. Questions submitted asking Government to clarify the Government's role have not yet been answered.

Yesterday Sen. Dunkley said his party supported the need for lower-cost housing and the need to increase the hotel bed capacity for the Island's tourism industry.

But he added: "Our immediate concerns with the Grand Atlantic initiative are twofold:

"One, the contradiction inherent in the commitment to building a "three-star hotel" property alongside low-cost housing and Bermuda marketing that is focused on high-income customers for a "platinum" experience; and two, the confusing nature of the Government's commitment to building the project's residential component and the arrangement it has made to support project financing. Underlying this commitment is our larger concern that Government is adding to its already huge debt."

He added that the Government and developers' statements on Tuesday did not appear to match up with previous ones. He said Government needed to expand on the issue.

"What is the quid pro quo that enabled the developer to get financing for the project?" the Senator asked. "What guarantees if any has Government made to bring about "full financing" by the Bank of Butterfield?

"What has Government committed to pay for the land and the low-income housing on which it stands?"

The Bermuda Democratic Alliance also had questions.

Mr. Hunt said his party also welcomed the news that more affordable homes would soon be available for Bermudian families.

But he added: "There are some outstanding issues however and some questions that should be answered. We query how the Government can class the development as a public-private partnership when Government is not injecting funds into the project or purchasing the land per previous press releases?

"What criteria is followed by the BHC in giving Bermudians the opportunity to purchase a home?

"How is the list of needy families ranked?

"How does a three-star resort fit in with a desire to attract wealthy American visitors from the East Coast that would be looking for four- and five-star hotel quality?

"We call on the Premier to give some answers."