Confusion last night reigned over Bermuda's future liability if health hazards result from burying the Island's asbestos problem overseas.

For Michael Marshall insisted -- contrary to claims by Environment Minister Pamela Gordon -- that his Bermuda Waste Management Company had indemnity against legal action.

Government has argued against dumping abroad because it says Bermuda would have to have "an open-ended insurance policy which would be major bucks every single year forever''.

And Ms Gordon said in The Royal Gazette on Tuesday that Mr. Marshall had not come up with a indemnity which "exempts us from any liability''.

But Mr. Marshall -- who offered to set up a firm to handle the asbestos -- insisted his guarantee from Oakridge Landfill in South Carolina would cover the Country against future action.

Mr. Marshall said: "The Government doesn't have to put up a goddamn thing.

"And the Minister can't have misunderstood because we have handed it to her in three different directions.'' Mr. Marshall appeared to be backed by Wray Mattice of US-based Oakridge Landfill.

Mr. Mattice said: "We have the ability to indemnify and we have already offered that -- that is our intent. It's a common process and it's certainly an acceptable process.'' He added: "In the US, a polluter or a generator of waste cannot walk away from it. But at the same time, we have legal ability to assume ownership of the waste and indemnify them.

"The Government would not have to carry a policy -- that would be duplication. We are offering to do that. Our insurance policy is going to protect us and our customer on the job.'' And Mr. Mattice added he had discussed the issue of Bermuda asbestos with the South Carolina health and environment authorities and had been told there were no regulations which prevented his firm from taking the waste.

Mr. Marshall was speaking after another Bermudian businessman, Michael Stowe of International Strategic Management, said he could set up a deal to have the Island's asbestos buried in a high-tech site in Mississippi.

And Mr. Stowe added that he had secured an indemnity clause which would absolve Government of any liability, subject to strict conditions over the nature of the waste dumped and the packaging.

Ms Gordon could not be contacted for comment on the latest claims by would-be waste disposal firms.

But she said maintained earlier that the US government had made it "very clear that original country will be liable''.

She added: "The biggest part of the problem is not the initial indemnity -- we have three or four sites which would apparently give us indemnity.

"The difficulty comes with the third party aspect of it -- what my concern is the encumbrance of the present generation and future generations with an insurance policy to cover that.

"No-one can offer us third party because the US government will not indemnify the originating country.

"We have had some quotes which are absolutely horrendous -- that is the perception of the risk because of the kind of health hazard asbestos creates.'' She added that sea dumping two miles down off Bermuda appeared to be the best option because asbestos is only a cancer risk in the air, although that would be decided by Cabinet.

She added the London Convention on marine pollution had accepted tiny countries like Bermuda faced a problem with disposal of waste like asbestos and had cleared the way to sea dumping, while still forbidding that option to larger and wealthier countries.

No-one from the US State Department could be contacted for comment last night.

GOVERNMENT GOV