Health Minister Nelson Bascome says the Bermuda government will not construct a new US$500 million hospital on 10 acres of land in the middle of the island's Botanical Gardens.

"We will not be breaking any virgin land to build any new hospital," Bascome told Parliament as Opposition legislators criticized the government over its handling of the plans to rebuild the King Edward VII Memorial hospital.

"We are going to get it right. That hospital will be built and I will say this, it won't be built on any virgin land."

Newly appointed Premier Ewart Brown had already paved the way for the gardens to be saved when he outlined his vision for Bermuda last month and said the new hospital need not be built in the Botanical Gardens.

Calling for a radical assessment of the island's health needs, Brown said it was better to work out what services were needed before picking any site.

"Only after it is determined what services the hospital should deliver can costs, location or other decisions be made," it added.

Valerie Wallace, a member of the 'Save the Gardens' lobby group, said she was delighted with the announcement.

"It's wonderful when people can speak up and be heard," she said.

Bascome's statement marks a major turnaround from the end of August, when former Health Minister Patrice Minors unveiled plans for the controversial hospital.

Despite the protests, government had said the decision could not be reversed until Scott signaled a possible U-turn in mid-September.

Bascome said that 'people power' had been heard loud and clear in the corridors of power. But he did not say where the new hospital would now be built.