Bermuda Union of Teachers general secretary Mike Charles believes the money Government will spend on a multi-million lease agreement with Pembroke Hamilton Club (PHC) could be better spent.He spoke out as Government yesterday confirmed it had signed a lease agreement with PHC four years ago. The Royal Gazette revealed earlier this week that the Ministry of Education had agreed to pay PHC as much as $10 million, spread over a 20-year period, in usage fees for schools in the area to use the club’s yet to be built multidimensional complex once the project was completed.The usage fee was to increase annually at the rate of inflation, with the annual fee starting at $391,000 a year.BUT chief Mr Charles remains “baffled” as to why the Ministry would want to make such an investment when there are more pressing issues that need to be addressed in local education.“As a physical education teacher and someone who is involved heavily in sports, you always want to see something like this,” he said. “but I don’t think that is a priority right now and it really baffles me.”This has come to us as a shock especially at a time when we‘re having cutbacks and asked to do more with less. Teachers are being stretched and asked to cover classes for their colleagues because substitute teachers can’t be provided and monies are projected for something that, as far as know and can see, is unnecessary at the moment.“If, as it is alleged, that’s what was done I think it was a gross error on their part when you have so many more important things to do in education.“If you are going to spend money you spend money on upgrading your teachers and professional development if you want to improve teaching and learning that’s what brings results.”The leasing agreement between the Ministry of Education and PHC was signed by both parties in 2008 but never made public.Government yesterday confirmed it did sign the agreement.A statement from the Ministry of Education read: “This morning the Ministry of Education moved to ensure clarity regarding reports in yesterday’s and today’s Royal Gazette surrounding the Ministry’s financial commitment to Pembroke Hamilton Club (PHC).“Regrettably the stories have caused some concern in the community.“And the Ministry wishes to clarify that it is not committed to provide any funds to the PHC until such time that their facility is completed and public school students have access to it.“The Ministry further advised that there was a contract signed in 2008 and the finances being distributed are solely dependent on a completed PHC facility.”Shadow Education Minister Grant Gibbons has demanded that Government give a “full explanation” for the lease, which was never made public. He said: “A commitment of this magnitude would have a material impact on Ministry spending over a 20-year period and Parliament should have been informed, at the time the agreement was signed.”PHC also released a statement yesterday claiming The Royal Gazette article contained “inaccuracies” but failed to highlight exactly what those inaccuracies were.Instead, the press statement outlined some of the challenges the club has encountered securing financing for three-phase development plan to upgrade its sports complex in Warwick and Government and members’ support for the multi-million dollar project.It also highlighted the club’s successful sports programmes, award winning majorettes and drum corp and scholarship awards scheme which has awarded $85,000 over the last three years to members.In 2001 PHC borrowed $1,202,778 from the Bermuda Industrial Union (BIU) to cover costs for the installation of a new lighting system and work done to their to Warwick ground.The loan was to be paid back over a 17-year period at an annual interest rate of seven percent via monthly payments of $10,075.93.The club has yet to pay principal on the loan and for the past several years has only paid on the interest in monthly payments of $7,000.After the BIU made the $1.2 million loan to PHC, the club successfully negotiated a 20-year lease agreement for $1 million with Esso for 20,000 square feet of land at their Warwick ground.Esso subsequently leased an additional 2,000 square feet of land for $125,000.00 to bring the total amount of the lease to $1,125.000.00.Monies for leasing the gas station property have been fully paid to PHC.However, PHC has encountered difficulty securing additional funding to finance a new multidimensional sports complex at their Warwick property.The club has suffered heavy losses of revenue in recent times, including the $164,250.00 they were forced to write off after the tenants of their Reid Street building, Total Home Ltd, went into liquidation and the termination of their contract with cellular provider M3Wireless.Fears have also been raised that the BIU are on the verge of calling in its loan to PHC. However, PHC president Chris Furbert, who is also president of the BIU, has dismissed this claim.PHC are currently exploring options to generate revenue to pay off debt and improve the club’s financial standing which includes potentially selling the club’s two-storey building in Hamilton.The building is estimated to be worth between $3.2 and $3.6 million.The option of selling the building has been strongly rejected by some of PHC’s membership.