Bermuda's two main banks said yesterday they have given substantial sums to help the housing crisis, but they had not received any formal approach from Bermuda Housing Corporation (BHC) for a $6 million interest-free loan to build low-cost homes.

In a Labour Day speech on Monday, Bermuda Industrial Union president Derrick Burgess called on Bank of Bermuda and Bank of Butterfield to give BHC the money because the union had handed over a plot of land to the Corporation for affordable housing.

He said the banks had made $500 million in profits between them and the new housing on a BIU-owned plot of land between Court and Union Streets could only be built if the banks gave an interest-free loan paid over 15 years.

Bank of Bermuda chief executive officer Henry Smith said yesterday no concrete proposals had been received from the Housing Corporation.

The Bank gave $3 million in charitable donations last year, including Habitat for Humanity, but it has a responsibility to its shareholders, who include many Bermudians and pension-holders, he said.

"Other than an informal conversation I had with the Minister (Nelson Bascome) last week, no-one has approached the Bank to suggest any concrete initiative whereby the Bank could provide further assistance to the Housing Corporation,'' said Mr. Smith. "We are very aware that housing is an issue facing many Bermudians and we would encourage any charitable organisation that has a substantive plan for a project that can address it to apply to the Bank of Bermuda Foundation for financial assistance.''

Saying the Bank had excellent relations with Government and the Housing Corporation, Mr. Smith added: "We are always prepared to enter further discussions with them to consider initiatives which they believe may be in the Island's best interests.

"At the same time, and I am sure people appreciate, the Bank is answerable to it shareholders, who include thousands of Bermudians and their pension funds.''

BHC general manager Raymonde Dill could not be contacted yesterday to see if he supported the call for the interest-free loan or intended to ask the banks for this arrangement.

Bank of Butterfield issued a statement saying it has a strong commitment to the community and each year makes hefty donations to charities, and "we are pleased to consider any charitable incentives that will contribute to the health of our community".

"Through our long-term relationship with BHC, we continue to work to help meet the needs of individuals and families who require special consideration in the purchase of their homes.''

Meanwhile, Mr. Burgess attacked Acting Opposition Leader Michael Dunkley, who accused him of "political grandstanding" and claimed everyone would want an interest-free loan if the banks set this precedent.

"That's sheer nonsense, the comments by Dunkley and I expect his comments. Everything that he said was expected - that everyone would be going to the bank for interest free loans. That's rubbish,'' he said.

"We have to stop having our eyes blinded. Do they have a suggestion, do they have a solution to low cost housing? No. Are they prepared to put up anything, free labour? No.

"We are trying to assist where we can and I think that's what our goal is - to assist. It cannot be left to the Government, because if it's left to the Government it will fall on all of us. If any organisation out there is prepared to help then please do that.

"If they (financial institutions) want to say `come in Derrick, we cannot give you the loan interest free, but we might be able to do it at one percent,' then please do. Let's see how we can do it to get real low cost housing.

"You have some people that really don't care. For the best interest of the country, we have to put all those likes and dislikes aside, because we still have people that are going to social assistance, bringing up children, and that's not a nice feeling.

"We here at the BIU would want our people in this country to be as comfortable as possible, so they are able to take care of their family and provide for them.

"Because there is one thing that we should be frightened of, and that is creating a welfare society. If you have many families coming up in a welfare society, then the children coming up will think that's the way to go. That can be very dangerous. That's why we approached Mr. Bascome and he was excited about it and wants to move forward.

"What is happening today is that we have spent millions of dollars on subsidising rent for our people because they can't afford it. Obviously the tax payer is paying it back. If we can provide some real low cost housing through an interest free loan or whatever the financial institutions can come up with, then we can take some of that strain off of the people of this country.''