Plans for a new resort overlooking Castle Harbour could lead to a `glut' in expensive housing in Bermuda, according to Shadow Finance Minister Grant Gibbons.

The Minister also called on Government to provide more details on the project -- particularly when so much taxpayers' money was at stake.

Dr. Gibbons last night told The Royal Gazette there were too many unanswered questions about the $200 million project which was unveiled on Friday by Premier Jennifer Smith.

The scheme, which is on the former site of the Mariott Hotel, includes timeshare apartments and houses, which will have to be sold before the hotel can be built.

Dr. Gibbons said that there were a lot of expensive new houses flooding the market at the moment, and he pointed to high-end real estate developments at Elbow Beach, Palmetto Bay, Pink Beach, and Morgan's Point.

"This would suggest that unless this is carefully planned we could well have a glut of high-end residential accommodation,'' he said.

Premier Smith revealed plans for a five star resort at Castle Harbour, Hamilton Parish -- called Regent Hotel Bermuda which she said was due to open in 2002.

The ambitious plan, which is still to secure funding, includes a $30 million Government guarantee to encourage investors to come aboard in addition to concessions on land tax, payroll tax, incentives on Bermudian entertainment and duty free alcohol agreements.

According to the Premier, the $30 million guarantee to investors was in the form of a `Credit Security Account' -- an account which is to be held by a third party as security until the deal is completed -- and would be funded by land licence fees from the sale of homes at Ship's Hill and Tuckers Point.

Castle Harbour operators Bermuda Properties welcomed the deal, and said the Government pledge would go a long way into getting funding.

Dr. Gibbons said: "It is not that I am trying to knock the concept of Bermuda Properties going forward, I think it is very important. But there are a lot of unanswered questions and the devil is in the detail about how they made these arrangements.

"For example the Premier said that this sends a signal that Bermuda is investor friendly to potential hotel developers, but it sounds like it is investor friendly for special deals.

"What does that mean in terms of other hotels? And what does that mean in terms of the knock-on effect that may happen because of the production of high-end housing before we see any hotel there? "There is a lot of taxpayers' money at stake here, whether it is by a credit security account, or whatever, they need to come out and tell the people what the deal is.

"Then we (the UBP) can come out and judge whether we think the whole thing is as good a deal as they seem to think it is for the people of Bermuda.'' Dr. Gibbons also criticised the Government for its lack of action in producing low cost housing for Bermudians.

"I think it is pretty clear that the Government has really been dragging its anchor in dealing with the low-end, low income housing. That has really dragged on. The only movement has been at the base, and that project was already well under way.

Warning over hotel project "We do not have a problem with it (the project) conceptually. What we have is a lot of questions about how it is actually being managed and whether or not some of these decisions are good ones or not and in the long term best interest of Bermuda and the taxpayer and long term tourism.''