The Bermuda Tourism Authority last night defended its decision to grant a loan to a private company after questions were raised by Shadow Transport Minister Zane DeSilva.

“The Tourism Authority granted a request from the Whitfield Group to facilitate an interest-free loan to protect several visitor events scheduled at the Pier 6 facility,” a BTA spokesman said.

“The facility was damaged in Hurricane Fay and had it not been for a BTA loan, rooms, nights and visitor economic impact were at risk.

“The BTA was keen to protect this visitor business given that significant business was lost in October 2014 as a result of severe weather.

He added that the Whitfield Group loan was sought because storm damage to the Pier 6 facility was not covered by its insurance policy.

“Facility managers prepared the structure for the high winds forecasters predicted, but not the hurricane-force winds which ultimately took the whole country by surprise with gusts up to 110mph.

“Because forecasters had not prepared facility managers for hurricane-force winds certain parts of the structure were not closed off pre-storm, therefore an insurance claim was not attainable.”

The statement was issued after Mr DeSilva questioned why the BTA decided to provide the loan to a tourism related entity, in light of the civil servants who have been under pressure to make sacrifices.

Speaking to ZBM he said: “It’s disappointing and quite frankly it’s unacceptable for the tourism authority to take these funds and use them as they have done.

“We don’t know the details, we don’t know if there’s an interest attached to it and we don’t know the terms of repayment.”

He further called on the Transport Minister to make those details available.

The BTA spokesman said that this was not the first time the Tourism Authority had given an interest-free loan.

“In November 2014, the BTA announced several other local enterprises which received interest-free loans to help get their exiting home-grown ideas off the ground,” the spokesman said.

“Those loans were facilitated for Soma Sailing, Scootcoupe, Funworx and Shelly Bay Beach Experience.

“Those loans are payable as outlined in their terms of the agreement.”

He said that the BTA facilitated the loan for three primary reasons: firstly, because important international events, notably the ILS conference, were in jeopardy as well as local events.

Secondly, to ensure the visitor experience for those visitor events was delivered as expected, and that experience includes iconic views of Hamilton Harbour at night.

Thirdly, it showed support for a local small business, as the BTA does for a plethora of small businesses and entrepreneurs in the local tourism economy. More than $813,000 in such investments to home-grown ideas are being made this year.

He added: “The interest-free loan is due and payable by the Whitfield Group as outlined in the terms of the agreement and secured by a mortgage over the property.

“The Bermuda Tourism Authority Act 2013 permits the BTA to provide loans.”