Morgan's Point, the empty former US naval base which Government has been trying to develop for years, could be used for low-cost housing, Sen. David Burch revealed yesterday.

Rival developers have been hoping to transform the contaminated base in Southampton into an up-market marina, golf, leisure and housing complex, but the latest bid appeared to have collapsed this summer.

Sen. Burch, the new Housing Minister, who also has responsibility for Bermuda Land Development Company, said yesterday that he was planning to visit the huge site and was considering using it for affordable housing.

He said he was looking both at building new houses for Bermuda Housing Corporation, and at renovating some of the existing properties on the site.

"There are some resources there and there's some real estate that could be built on. We're looking at both options," he said.

When asked if there had been any new developments surrounding the site, he said yesterday: "Not that I'm aware of. The last group that expressed an interest came to a conclusion.

"There has been no approach to me and no files handed to me from people interested."

In 1997, the former United Bermuda Party government selected Morgan's Harbour Investment Ltd to develop the site, but the project was put on hold in 1999 when the then Development and Opportunity Minister Terry Lister pulled the plug.

Mr. Lister said he could not allow the project to remain "in limbo", and he gave rival developers BEAM Ltd 90 days to step in with an alternative plan.

Nothing came of that, but in March this year, both developers said they were ready to get back round the table after the United States signed a deal to finally renounce the bases - leaving Government with the multi-million clean-up bill.

Since then, there has been no further progress in developing the site.