shortfall of over $4 million for this financial year.

And Government will pick up the tab.

The Bermuda Land Development Company Ltd. tabled its Operating Strategy and Business Plan in the House of Assembly on Friday.

The report stated that for the 1997-98 financial year, the BLDC would generate $3 million in revenue.

This will come in the form of the Morgan's Point developers' payment of $2 million, tenant charges of $608,000 and $340,000 in lease payments.

However it is not enough to cover its projected expenditure of $7.2 million.

This includes $3.6 million for site and facilities maintenance and security, $1.3 million for staffing and $1 million for professional services.

The report said: "Government will fund the $4.4 million operating shortfall by subscribing in cash for common shares of the Company as part of an overall $10 million equity capitalisation.'' And the report revealed that further capital expenditures totaling some $4.5 million are projected, including $1.2 million for the construction of a new sewage treatment plant and $2.7 for the continued development of the Marginal Wharf Industrial Area.

The report stated that development of the Base properties would take up to 20 years and the BLDC would continue to advance the process in phases.

But it still expected to need Government support for its operations and capital programmes until the turn of the century as expenditures continued to exceed internally generated revenue.

These annual operating shortfalls would be substantial and unavoidable so Government support was critical, added the report.