decided to back a private Bill paving the way for the building's demolition.

After six hours of debate the MPs decided the economic benefits of the $100 million plan to build offices on the derelict site overcame doubts about non-Bermudian ownership of the land.

Now the Bermudiana Site Rehabilitation Bill is assured safe passage through the House of Assembly as the PLP has also indicated its support.

If planning permission is granted the Bermudiana could be demolished by March or April with development of offices for ACE Ltd. and Exel Ltd. phased over the next five years.

ACE and Exel have agreed to buy the property from Argus Insurance for about $18 million and will build an office complex on the site.

The deal hinges on planning permission for the office plan as well as the passage of the private Bill, allowing the two foreign companies to wholly own the land and bypass the Island's 60/40 rule.

Directors of the Bermuda Financial Centre Ltd. have opposed the scheme and urged MPs to block the Bill.

Last night the UBP's Parliamentary Caucus met to continue debate from last Thursday on the future of the Bermudiana Hotel.

After the meeting Premier David Saul said: "After over six hours of debate, the UBP's Parliamentary group have reached a consensus which will see the Government supporting the private Bill.

"The decision to support it centred on the central issue of what is in the best long-term interests of Bermuda and its economy.'' According to Dr. Saul it was argued that the Bermudiana case was similar to an issue 40 years ago when non-Bermudians were allowed to own land to build hotels.

"At the same time everyone agreed that this was a one-off and understood the special circumstances surrounding the site which for ten years has laid dormant and has been an eyesore and an embarrassment,'' added the Premier.

Privately some MPs believed conditions should be attached to the private Bill ensuring the Bermudiana sale was treated as a one-off and did not set any modern precedent.

It was also thought that a few UBP MPs were against the plan and it has not yet been decided whether a whip will be put on the vote -- meaning MPs must toe the Party line -- or if it will be a free vote.

Dr. Saul added: "As the Bill stands right now, we have written assurances on how this will be controlled and the circumstances, by definition, are virtually a one-off.

"Everyone has certain reservations, but we are going to support the Bill because we think it is good for Bermuda in the short and long-term, bringing employment and foreign exchange.'' BUSINESS BUC