termination of Government's annual grant -- comes news the organisation has made a profit, possibly the first ever. Roger Crombie reports The West End Development Company (Wedco) has made a profit for the first time in its 15-year existence, The Royal Gazette has learned -- just as an annual $717,000 operating grant to Wedco from Government expires.

But Wedco management is sufficiently upbeat about its prospects that it is set to embark this year on a $2.5 million infrastructure project which will see existing roads, storm sewers and drainage systems at Dockyard renewed.

Wedco is due to present its annual financial statements to Parliament in February, following approval of the statements by Wedco's Board of Directors.

Those statements will show what an insider referred to as "a small profit,'' believed to be the first for Wedco.

Government's annual grant to Wedco will terminate on March 31, the last day of the Bermuda Government's financial year, leaving the West End organisation to find its own sources of funding. This decision was announced last year, and has not taken Wedco by surprise.

"Since 1985, Government has put a tremendous amount of money into Wedco,'' said general manager George Smith. "Their investment was always seen as seed money which would encourage the private sector to bring its economic power to the development process.'' Mr. Smith said that "Government has a lot of other issues to address and only so much money with which to address them. The time has come for Wedco to stand on its own two feet.'' Wedco derives its income from rents charged to tenants, retail commissions earned from some of the retailers who operate out of Dockyard, the sale of properties and its management of the docks and harbour at the West End.

Dockyard is the destination for two cruise ships this season. Last year, the new cruise ship policy which saw the Horizon move from Dockyard on Thursday to spend Friday in Hamilton was described by Mr. Smith as a "bombshell to all who have worked and invested in the Dockyard dream.'' This year, Mr. Smith is more sanguine about the cruise ship situation. "We have a different kind of traveller these days,'' he said. "Cruise ships are more luxurious than they used to be and for many of them, the ship is the destination, rather than Bermuda.'' Mr. Smith stressed that both Dockyard and Bermuda derived benefits from cruise ship passengers. "Of course the cruise ship business helps us tremendously,'' he said, adding that retailers at Dockyard tell him that most spending by cruise ship passengers takes place on the last day of their stay.

"Cruise ship passengers help us, but we rely on all parts of the tourism picture and on locals, too,'' Mr. Smith said. "One half of Bermuda's visitors come to Dockyard, which we are told is the Number One tourist destination within Bermuda.'' To learn more about why people visit Dockyard, Wedco intends to conduct surveys on tourist travel patterns, to support the exit interviews it has been conducting.

Mr. Smith said that he found new Tourism Minister David Allen "very positive, very creative and very helpful.'' Mr. Smith added: "I have nothing but good things to say about Mr. Allen.'' Wedco management remains confident about the prospects for the Royal Naval Dockyard for which it has responsibility. The approach Wedco is taking to developing the land and buildings under its control is paulatim sed firmiter , slow but sure.

"We feel that the situation here at Dockyard is more positive than it's ever been,'' said Mr. Smith concluded.

Walter Lister is the new chairman of Wedco, replacing chartered accountant Scott Hunter, who has served in that capacity for many years.

FORMER CHAIRMAN -- Scott Hunter UPBEAT -- George Smith