A controversial plan to build a recreational retreat on one of Bermuda's last untouched islands has passed its first hurdle, despite objections from conservationists.

The Development Applications Board yesterday granted Mr. Fernance Perry permission to set up the retreat for young and elderly people on Grace Island.

The National Trust had objected to the plan, claiming the scheme would drive out the wildlife on the remote island, in particular the Blue Heron which had made the area its home.

Mr. Perry wants to build a janitor's cottage, new docks and an area for tents catering for between 30 and 50 people about four times a year. The scheme would be run by a non-profit making trust and supported by volunteers.

The application was yesterday granted in principle, but before final approval is given the DAB has set a list of conditions to be met.

To help protect the island's habitat, the DAB is insisting a survey is carried out tracing all mature trees, the cottage will only be used for a caretaker for the island and to help protect the Nature and Woodland Reserves they will have to be protected by barriers during building work.

The DAB also said that an application for final approval would have to include a management plan accurately outlining how many people will use the area.

"Any use of a commercial nature or which generates excessive noise will be unlikely to be given favourable consideration,'' the DAB's report states.

Last night, Mr. Tim Marshall, chairman of the National Trust's environment committee, said he was disappointed by the decision, but pleased the DAB had insisted on conditions protecting the environment.

"The Board has decided to ensure that the natural environment is protected, to that extent the Trust is pleased. However, we want the island to be left alone.'' Mr. Marshall said the environment committee would meet later this month to discuss the issue and any future steps that could be taken.

"This is another remote island lost and there are not very many left in their natural state.'' Mr. Perry, who has owned the island for about 30 years, was unavailable for comment yesterday.