Exempt company staff are jumping to the top of school waiting lists at Saltus after their firms ploughed $2.4 million into new facilities.

A group of insurance firms have been promised scores of the exclusive private school places every year -- as a thank you for the massive cash boost.

Heads at Saltus, dealing with long waiting lists, confirmed they were bumping up children of exempt company workers.

But they promised the entire Bermudian community was profiting from better resources and more places at the school.

Ten places are being opened up for the exempt companies each year in Primary One, Primary Two and Primary Three at Saltus Cavendish.

The firms paid for a $1 million project to build three new classrooms at the Devonshire school, winning 30 guaranteed places for their employees' children.

The development freed up 15 places in each year by cutting class sizes.

Saltus heads, who had 240 applications for 80 Primary One places last year, told company bosses that they could fill 10 of the new spaces in each year.

The remaining five are handed to those at the top of waiting lists.

Now the firms, who formed an ad hoc standing committee to fund school facilities, are ploughing another $1 million into a new classroom development at Saltus Junior School on Woodlands Road, Pembroke.

And the $2.4 million they have spent on Saltus in the last 18 months will guarantee them junior school places next term.

Insurance firms involved include Renaissance Re, ACE, Exel, CAT Ltd. and Terra Nova.

The deal has helped Saltus expand without adding to its crippling $5 million debt.

Director of Development Dan Blagg said the firms had to notify the school by the end of March each year if they wanted to take up the places.

He added: "We believe strongly at Saltus that education is one of the important ingredients for the future of the community.

"We are very pleased that we are part of that process and that we are considered to be a good school.

"The insurance companies have given us a very welcome gift in the past year and a half and I believe that their ultimate goal is to help other schools as well.

"From them, it's extreme generosity and good business sense. They need to prosper in Bermuda. We need good schools with good facilities.'' He said "the entire community'' had benefited because the companies' input had made five new places available in each year for those on waiting lists.

And Mr. Blagg said any places not taken by the exempt companies were immediately offered to those at the top of the lists.

John Lummis, Chief Financial Officer at Renaissance Re, said: "We helped support the expansion of Saltus to the benefit of Bermudians as well as the staff of the exempt companies. Both sides benefited.'' Opposition Senator Milton Scott, of the Bermuda Union of Teachers, said several private schools had similar arrangements.

He added: "This has been going on for some time and it's a common practice that certain spots are allocated for certain companies. It happens.

"The international companies may not have faith in the public school system, so they gain assurances that there are x number of private places available for their children.

"All this is is an indictment of the Government's treatment of the public school system.'' International business leaders began expressing concern about the lack of space in private schools back in 1996.

The firms met with several heads, from Saltus, Warwick Academy and Montessori Academy, and have since had dealings with other private schools.

But one Saltus parent, who asked not to be named, said: "The main source of concern is at the primary school level and there's intense competition there.

"As far as I'm concerned, Bermudian kids are not getting a look in and the whole emphasis seems to be placed on business. It's totally unfair.''