OPPOSITION MP John Barritt has accused the trustees running the Bermuda Housing Trust (BHT) of "losing their way" and of aligning themselves too closely with the Government.

Mr. Barritt said the huge rent rises imposed on BHT's elderly tenants showed that the trustees were not living up to the original aim of the BHT, to provide low-cost housing for the needy elderly.

He described Government's suggestion for now financially overstretched tenants to apply to Financial Assistance for help as "a pathetic policy".

And he labelled last month's announcement of plans to build a new BHT development in Southampton as "a public relations exercise to boost the image of a sagging Government", adding that such plans had been in the pipeline for around nine years.

"I don't know the trustees personally, nor do I know their political affiliations, but there are signs that they have lost their way," Mr. Barritt said.

"Firstly, there are the drastic increases in rent and secondly, I would agree with Ed Cowen that they are too close with the Government of this country."

Mr. Cowen, a former Bermuda Housing Corporation (BHC) general manager and BHT trustee, told this newspaper last week that the Trust had been "effectively nationalised".

Mr. Barritt cited last month's announcement, by BHT chairman Ronald Simmons and Housing Minister Ashfield DeVent, on plans for a seniors' housing complex close to Morgan's Point, near the Rockaway ferry terminal, as evidence for his claim.

"The Minister of Housing and chairman of the Trust announced the plans to build units for seniors ? but really there was no plan," Mr. Barritt said.

"They couldn't say how many units were being built, who was going to build them, how much it would cost, nor who was going to fund it. It appeared to be just a public relations exercise to boost the image of a sagging Government. With all respect to the trustees, that is not why the Trust was founded.

"This is a trust and they are trustees, not a Government board of which they are members. The Trust was set up to be separate and apart from Government, with Government providing what help it can.

"There is provision in the Bermuda Housing Trust Act (1965) for Works & Engineering to provide services at cost price or next to nothing.

"But as trustees they have a responsibility for the purposes for which this trust was established, to provide low-cost housing for the needy elderly."

When contacted on Wednesday afternoon, BHT chairman Mr. Simmons declined to comment.

Mr. Barritt's claim that the Rockaway announcement did not unveil a new plan appears to be borne out by both a letter obtained by the and the 1999 BHC annual report.

The letter from the Works & Engineering Ministry to the Bermuda Housing Trust is dated June 1996.

Addressed to former BHT chairman, the late Roddy Ferguson, it states: "Thank you for your recent letter informing me that the Bermuda Housing Trust had agreed to accept three acres of property at the former US Naval Annex in Southampton for the construction of rental units for seniors.

"You will recall that Cabinet authorised the Ministry of Works & Engineering, Parks & Housing to donate its services for the design and construction supervision of the development and to undertake the necessary landscaping and roadworks at the site, free of charge to the Trust."

The six-year-old BHC annual report refers to how the Corporation was working with the Trust and went on to state: "Regarding land at Morgan's Point, a site has been identified and plans are being developed that will provide an additional 35 units."

Mr. Barritt, a lawyer, compiled a letter to help 37 BHT tenants to appeal to the Rent Commissioner against the increases which have been effective since January 1 this year. Some tenants have seen their rent more than double.

Mr. Barritt questioned why the large increases had become necessary now.

"By my rough calculations, it seems that the Trust was taking something like $400,000 in rent and the increases will bring in roughly another $250,000," Mr. Barritt said.

"When you look at those properties and talk to the people who are living there, they have a hard time understanding how $400,000 can have been spent on maintenance over the years, never mind $650,000.

"My concern is that what the trustees are now trying to do is, off the backs of the seniors, start to fund the proposed Rockaway development."

He added that the Trust was supposed to fund any new developments through donations, not rental income.

"When a former trustee like Ed Cowen said he believes the Trust has been nationalised, that should sound a note of concern not just for me and the tenants, but for the people of Bermuda generally," Mr. Barritt said.

"I have not seen the Trust's financial statements, but from speaking with former trustees, I understand that there was a considerable fund that had built up by the time Roddy Ferguson retired. And then the BHC became more involved. How is it that these dramatic increases are suddenly required now?"

Mr. Barritt added that the late Mr. Ferguson had kept costs and rents low by going out into the community to get donations of money, work, discounts and materials.

"It seems that that's all gone out the window now," he added.

Referring to changes brought in by Government in the rules for property sales, which mean foreigners are now allowed to buy only properties in the $126,000-plus annual rental value bracket and only from other non-Bermudians, Mr. Barritt said Government should be concentrating on the other end of the economic scale.

"They seem to be trying things to tackle the housing at the end of the market which is out of reach for 95 per cent of Bermudians," Mr. Barritt said. "Now Government has a chance to really help people who are truly in need and what does it do? It says, 'If you can't afford it, go to Financial Assistance'. That is a pathetic policy."

Housing Minister Ashfield DeVent did not return our call by press time.