A new $25 million rest home in St. George's needed such a big budget in order to replace an ageing and unsafe facility inherited by the PLP when it came to power in 1998, according to newly appointed Works and Engineering Minister Dennis Lister.

He has strongly defended the more than doubling of cost that was necessary to bring an up-to-date rest home facility to the East End.

Since the 2005/06 budget estimates the St. George's project cost projection has jumped from $20.7m to $25m.

Shadow Health and Seniors Minister Louise Jackson has warned that Government faces going bust if it continues to spend at such a rate with the projected doubling of the number of seniors on the Island during the next 25 years.

The new rest home in Barrack Street is behind schedule and is expected to weigh in at $25m, compared to the initial $9.85m estimated for renovating the former St. George's rest home which was recommended for closure in 2000 by the chief fire officer because of serious safety issues with that building.

Minister Lister said it was wrong to compare that initial estimate with the final cost of $25m required to renovate a totally different building which can accommodate up to three times as many seniors and has advanced features to those that previously existed in the old rest home, including a dedicated secure area for residents with Alzheimer's.

A building that was formerly used as barracks and a school, opposite the bus depot in St. George's, is now almost ready to be handed over by the W&E Ministry to the Health Ministry.

In response to questions from Mrs. Jackson as to why it has cost so much to renovate, Mr. Lister said the residential care facility has entailed the complete refurbishment of two late 19th Century historic buildings and dealing with "several unforeseen matters" that came to light while working on the old buildings.

The Minister said that in 2003 when the original $9.85m estimate was made consideration was still being given to renovating the old rest home, but this idea was eventually dropped in favour of a more ambitious project for a larger facility at the former barracks.

Defending the higher cost that has resulted, Mr. Lister said: "When the UBP handed the rest homes to us there were in such a state that was dire. Attention was long, long overdue, and that deterioration (of the rest home facilities) did not happen when the PLP walked into power.

"When we saw the St. George's rest home we recognised we had to do something about the facility, hence it was closed."

He said it was going to cost around $9m to upgrade that site, but added: "We were continuing to assess the needs of the seniors replacing what was there would not meet the needs of seniors' care. And that's how we got to what we have now."

Mrs. Jackson is seeking further information from Government to show whether the St. George's project achieved the best value for Bermuda taxpayers, whether the contract was awarded to the lowest bidder and whether the contractor will be required to pay penalties for the delay in the completion of the facility.

She also warns: "In 1991 there were 295 seniors institutionalised in rest homes or hospitals, in 2000 there were 901. The Department of Statistics says the percentage of seniors in the population will double from 11 percent to 22 percent by 2030. We are going to have a huge increase in seniors with tremendous implications. I find it frightening that we have spent $25m for 43 people.

"The Pembroke Rest Home is in a deplorable state and they have just started to fix the roof at Leroy House after three years. I'm pleased with the St. George's rest home but it is costing around three-quarters of a million dollars for each resident.

"We have to look at other solutions. Assisted living is one and we (the UBP) have suggested people being given interest free loans to build an addition to their home for a loved one. And then there is reversible mortgages that would allow seniors to stay in their own homes."

Health Minister Nelson Bascome said: "We will be moving aggressively now to look at the Pembroke Rest Home and having more bed capacity."