year, the House of Assembly heard last night.

During yesterday's Ministry of Finance Budget debate, Finance Minister Grant Gibbons said that most of the money was earmarked for capital works projects at Southside -- the former US Naval Air Station -- in St. David's.

The grant will go towards the enhancement of roads and improving utilities in a bid to establish a "sound'' infrastructure for the East End property.

Dr. Gibbons said the inherited infrastructure was originally built for military purposes and required modification and in some cases scrapping.

He said a new sewage plant would have to be built since the one left by the Navy had virtually collapsed.

He promised that the new plant would be of the highest standards and said that it was important to have it up and running to service residents.

"I don't want to bring on residents without having a proper treatment plant,'' he said.

Some of the cash will also go towards mending 54 three-bedroom cottages, Dr.

Gibbons said.

And he promised to try and "speed'' up the process to accommodate current demands for housing. The homes had been expected to be completed for sale by September.

Part of the $7 million in funds will go towards landscaping so that the property will look less like a military base, he said.

Last November, the Bermuda Land Development Company unveiled its plans for the former US Naval Station.

The blueprints include a cinema, 117 acres of park land, community centre, youth club and day care centre.

Shadow Finance Minister Eugene Cox threw his support behind the proposed developments for the former US Naval Air Station and the three other properties -- Daniel's Head, Tudor Hill and Morgan's Point.

Earlier in the budget debate, Dr. Gibbons spoke on some of the 13 departments including the Accountant General, the Post Office and Customs which comprised the Ministry of Finance.

He said that the various departments of the Ministry of Finance generated 85 percent of Government's revenue while only accounting for 16 percent of its expenditure.

And he highlighted several developments and projects underway at the Ministry's headquarters.

During the last year, a International Business section was added to the Ministry which reflected the growing importance of International Business, Dr.

Gibbons said.

He also tabled guidance notes produced from the new International Business department on money laundering.

The guidelines were heralded by PLP backbencher Ottiwell Simmons who called money laundering "serious business'' which Bermudians should be concerned about.

Dr. Gibbons also informed the House that his Ministry was in the process of a broad based review of the Island's tax system.

Ministry of Finance 1998/99 estimates Ministry responsibility: To supervise the economy of Bermuda generally and to provide overall financial management and control of all Government activities.

Budget Estimate: $73,820,000 (last year $71,256,000) Revenue: $437,029,000 Budget Allocations Headquarters $2,199,000 Accountant General $27,307,000 Customs $8,275,000 Post Office $9,604,000 Statistics $1,291,000 Management Services $862,000 Social Insurance $963,000 Office of the Tax Commissioner $1,375,000 Registrar of Companies $3,937,000 Rent Commissioner $202,000 Computer Systems and Services $3,310,000