THE CHAMBER of Commerce is backing plans for a slew of building projects on the island, saying that the economy is not in danger of overheating.

The Planning Department is currently considering an application to transform the 37-acre Southlands property in Warwick into a luxury resort, along with plans to develop the neighbouring 11-acre Ritz-Carlton property. There are also plans to build a new hotel in Hamilton and a number of Government capital projects are also in the pipeline. Environmentalists warn the raft of proposals will put a strain on the island's infrastructure and economy. They also claim that planning controls are being bypassed by developers through the use of Special Development Orders.

But Chamber of Commerce vice president Dennis Fagundo said the proposals showed that the economy was strong and will continue to be so.

And he denied that a healthy construction industry would result in a flood of foreign workers to the island.

"This is certainly good for Bermuda," Mr. Fagundo, who runs D&J Excavating and Landscaping, said.

"It signals individuals and companies putting their money forward in the belief that the Bermuda economy is strong and, more importantly will continue to be strong.

"Further to this, construction is predominantly a Bermudian industry. The employment that these projects will bring will provide continued employment for Bermudians within the industry and opportunities for training and development for those wanting to enter the industry."

"Outside of the construction industry the increase in hotel employment once these projects are complete can only be good for an economy that is struggling to provide fulfilling employment to the lower income brackets.

"The indications at this time are that the industry will be well suited to manage these projects as they come online. While it is certain that there will be a level of expatriate employment within the construction industry this is not new and there is little indication at this time that the levels will be hugely affected. On the scale of the overall population it is unlikely that there will be an appreciable effect to the island's infrastructure."

Mr. Fagundo also defended the use of SDOs saying that the process is in ways "more strenuous than the regular planning procedures".

"The decision to grant an SDO by Cabinet is not undertaken lightly and the process requires endorsement by a multitude of boards and committees," he said.

"The development of Bermuda has been continuous for many years, although the population is still at a very similar level to that of the 1940s. The question of the overdevelopment of Bermuda is related to what image one carries of the island. Compared to years past many would say that Bermuda is currently very overdeveloped, others may say it has a long way to go still."

Alex DeCouto, president of the Construction Association of Bermuda, said it was too early to tell what impact any new developments will have on the environment.

"I think it would be premature to make any predictions," he said.

"Just because a Special Development Order (or planning permission) has been granted for a development, does not mean that it is a certainty. Proposals such as these go through a number of additional stages before reaching any degree of certainty. It is highly likely that all of these proposals have been formulated on the premise that they will be operating in today's market, not one in which there are a half dozen other new and substantial hotel properties to compete with.

"I would speculate that not all of the proposed developments will move forward at the same time, if at all. However, should any number of the more significant developments all move forward simultaneously, the industry would definitely need to import additional labour in order to service these projects.

"But on the issue of construction workers in particular, we do not have any evidence of a housing shortage for foreign construction workers in particular, any more than the housing shortage generally for those seeking 'affordable' housing. Certainly it is difficult to find suitable housing for our imported workers, but I would imagine that any of the other local industries would say the same. One of the developments stated specifically that they were including a very large employee housing component. Government has pushed for this, and it should go a long way towards minimising the impact of that particular development on our housing situation.

"Speculating on which of these projects would start, and when, is a futile exercise, and the number of additional workers, if any, would depend largely on this information.

"Government is able to plan or time its own capital projects to suit acceptable market conditions, however, these projects have been put forth by private developers who own the properties they are speculating about. It would be difficult, if not impossible, and certainly not recommended, to attempt, plan, or control the free market economy in which we live. It is much more likely that the same free market will identify only those projects which will likely be successful, and it is those projects which will eventually move forward.

"But clearly there is a new found optimism in tourism investment on the island and this is critical and much needed to improve Bermuda as a tourist destination."