Yesterday, Minister of Health Patrice Minors admitted that she was incorrect when she alleged that the Salvation Army sent money collected on the Island abroad to Canada.

A joint Press release from Mrs. Minors and Divisional Commander of the Salvation Army Major Lindsay Rowe stated that recent meetings had gone well.

In December reported the 30-year-old Salvation Army homeless shelter on Marsh Lane ? the only one of its kind on the Island ? was experiencing major problems with funding and that much of the structure was rotting.

A week later Mrs. Minors responded by stating she was "fed up" with the charity's pleas for more cash and was so concerned with the facility that she intended for it to go out to tender. She also stated she was concerned that ten percent of funds given to the Salvation Army were sent to Canada.

Major Rowe denied the allegations and said 100 percent of funds remained on the Island.

Mrs. Minors' comments unleashed a vocal backlash with many Letters to the Editor being written in defence of Salvation Army.

Yesterday, Mrs. Minors announced that the "confusion" over whether or not funds remained on the Island had been resolved.

"It had been my understanding from letters received from the Salvation Army that a portion of the funds collected were sent to Divisional Headquarters," she said. "Major Rowe has explained that Divisional Headquarters is in Bermuda, not in Canada, and I am satisfied with that explanation."

The Press release also stated that the Ministry of Health has assured the Salvation Army it will assist with repairs to the North Street shelter, on a timely basis.

Mrs. Minors said the Government is committed to reducing the struggle of Bermuda's homeless community.

The two parties have engaged in extensive discussions about the direction of the facility and plan to construct a new night shelter and rooming facility.

Major Rowe said he was encouraged by the Government's initiative.

He also said the Government intends to accept proposals from other organisations interested in managing the facility.

"We at the Salvation Army support this move and intend to submit a comprehensive proposal," he said.

Mrs. Minors concluded the Press release by saying the discussions with Salvation Army had been a positive step forward for everyone.

"This new thrust will embrace many of the goals incorporated within the Government's Social Agenda," she said.