fire yesterday as demolition of one of Hamilton's oldest buildings continued.

Shadow Environment Minister Mr. Julian Hall said he was appalled at the demolition of 200-year-old Trader's Gate building on Front Street by the Bank of N.T. Butterfield.

And he questioned whether the Trust's policy on preserving Front Street buildings had changed.

"I was aghast at the scene,'' said Mr. Hall, whose law office is in the building next to the demolition site.

"He said the Trust's inability to prevent "debacles like this'' meant "we must question the validity of their credentials and their ability to do the job of protecting and safeguarding our environment and Bermuda's long-term interests''.

Mr. Hall noted Premier the Hon. Sir John Swan was chairman of "the Trust's advisory committee''. "The Premier as the Government leader must make decisions with regard to planning laws and other matters which necessarily involve considerations that can conflict with the aims of the Trust,'' he said.

He said the advisory committee's deputy chairmen were Bank of Bermuda president Mr. Donald Lines and the Hon. Sir David Gibbons, chairman of "the same bank whose management has decided to demolish the building''.

But a Trust official said the men were only members of an advisory committee on fundraisng, not the Trust's day-to-day activities.

While the Progressive Labour Party recognises there must be progress, Mr. Hall said "we cannot help but wonder whether in this case Bermuda's environment has been sold out with a management buy-out, so commercial convenience and expediency operate at the expense of the environment.

"If so, then we in the PLP find this an unacceptable trade-off.

"The Trust must remember its terms of reference and demonstrate to the people of Bermuda that it has a sterling commitment to all of us so as not to compromise the position as regards our heritage and history.

"If not, it runs the risk of not being taken seriously and eroding its credibility.'' But chairman of the Trust's historical buildings committee Mr. Henry Ming said other than preservation orders on a few buildings, there was no law to protect old buildings from demolition.

Corporation of Hamilton secretary Mr. Roger Sherratt said building protection came through the Planning Department, particularly the Development Applications Board which hears all submissions and objections on building plans. He added the Corporation and Trust were working closely to maintain the city's appearance.

Mr. Ming said while the demolition of Trader's Gate was "sad'' and he hoped it would not have a "domino effect'' on Front Street, the Trust saw the bank's plans and was assured by the designers that some of the old architecture will be retained.

"The City of Hamilton's entire skyline is considered to be vital to our tourism industry,'' Mr. Ming said. "There is an attempt to retain, to some degree, the flavour of what was there.'' Construction will be similar to the way Trimingham's and the Williams building were remodelled, Mr. Ming said. Changes on Reid Street will not affect the Front Street profile.

"The scale of (Front Street) buildings in the past have been sympathetic to the scheme of things,'' he said. "And I want to see that sensitivity continue.'' Chairman of the Trust's working capital campaign committee Mr. David L. White said Sir John, Sir David and Mr. Lines have nothing to do with Trust's daily operations.

He said the three only sit on the advisory committee of the Trust's capital campaign to boost the major, long-term fund raising drive.

"In fact, that committee has not yet met,'' said Mr. White, who is also Editor of The Royal Gazette .