MPs have questioned why Government considered buying a building for almost $25 million during a recession and after suffering a $100 million shortfall in its finances.

On Saturday The Royal Gazette revealed that Government was negotiating with former UBP Premier Sir John Swan over buying the Swan building, on Victoria Street.

This newspaper was leaked Cabinet documents about the proposed deal which we published after winning a case against Government which brought an injunction seeking a ban on publication.

Michael Fahy, from Bermuda Democratic Alliance, said: "Yet another monument to the wasting of public money is not the better way to go.

"Whilst we appreciate that the Government may, in the long run, wish to reduce its office rental bills by buying an office block, now is not the time given the state of the public purse."

Shadow Finance Minister Bob Richards said the proposal to buy the Swan Building from Sir John provided a good opportunity to point out the inappropriateness of such expenditure right now.

And Shadow Works and Engineering Minister Patricia Gordon-Pamplin said her reaction to hearing that negotiations for the purchase reached an advanced stage in the current tough economic climate was one of "dismay".

The plan was outlined in a confidential Cabinet memorandum from Works and Engineering Minister Derrick Burgess, which was leaked to this newspaper last Tuesday by a source who wanted the public to know about the secret negotiations.

Mr. Burgess proposed that Government move some of its departments into the Swan Building to reduce the amount it spends on rent.

But Finance Minister Paula Cox was against the plan, according to the document, and Cabinet Secretary Marc Telemaque revealed in a sworn affidavit that "Cabinet was divided on the issue". It is not known if it was approved or rejected at Tuesday's Cabinet meeting.

Mr. Richards said he was in favour of public funds being spent to create jobs and to have a "multiplier effect on the economy" but he claimed this purchase wouldn't have done that.

"This plan speaks to a complete lack of understanding of economics," he said. "It just flies in the face of common sense, quite frankly."

He said the owner of the Swan Building would get the money from the sale and questioned how it created jobs or salaries for Bermudians. He added that now was not a suitable time for Government to be purchasing office space.

"We all know that Government does not have the cash for this. What really Government should be doing in a time of recession, if they want to do something about office buildings, is they should be putting the hammer on landlords and telling them to renegotiate down the rent."

Mr. Fahy said: "The Alliance is shocked that this would even be considered, particularly when money could not be found to build a new housing shelter for the most vulnerable of our community or provide the Bermuda Police Service with sufficient funds to adequately patrol our Island home.

"Why not save the people of Bermuda money on rental bills by relocating Government departments to the east and west ends of the Island to economically stimulate those communities and to reduce traffic congestion and pollution in Hamilton?"

He said much of Southside was in a state of dilapidation and Government assets were being left to deteriorate.

"That is what is so incredibly sad about this whole situation. Buildings that could have been renovated rot, many Bermudians continue to live in caves and cars and Bermuda makes the CNN news for gun crime — all the while Cabinet talks about buying office buildings. Where are their priorities? Where is the leadership? Rome burns while Nero fiddles.

"We urge the community to stand up and say no to Government wasting of what is money that belongs to the people of Bermuda. We need fiscal restraint and reallocation of the scarce resources we have on truly urgent needs. That would demonstrate true leadership and the better way for Bermuda."

Mrs. Gordon-Pamplin said the purchase would mean that, at a time when revenues were down for businesses, office space in Hamilton currently occupied by civil servants would be left vacant.

"Property owners may be hard pressed to meet their mortgage commitments," she said. "Government has a penchant for emasculating taxpayers when their raison d'être should be to work with rather than against businesses to maintain an economic equilibrium."

The Shadow Minister said the proposal should have been brought before the House of Assembly before it rose last Friday, as it will not sit again until February 5.

l See Editorial – Page 4