Government is refusing to say whether Coco Reef has abided by an agreement to pay a portion of its profit in lieu of rent.

Yesterday independent Senator Walwyn Hughes asked whether the hotel had stuck to a deal to pay 20 percent of gross revenue for the first three years.

The question came up as Senators passed a measure law granting new concessions to the Coco Reef Resort.

Sen. Hughes said: "Some people are saying a lot has been done for this establishment, let's sort out where we stand before we give something else."

But Junior Tourism and Transport Minister Marc Bean said: "The rent is tied to the lease issue and I am not willing to discuss lease issues."

After Senate President Alf Oughton raised concerns about the abrupt answer Sen. Bean said: "I am not in a position at this time to give an answer to Senator Hughes' question."

Earlier he had said the concessions were part of Government's plan to help upgrade Bermuda's tourism product.

The Opposition raised concerns about Coco Reef with Charlie Swan saying he believed staffing had been halved.

He said the Harmony Club was an example of a hotel which had been given Government concession to develop its product only for it to be turned into condos.

Now Coco Reef is going the condo route with a Special Development Order in January this year which gave the go-ahead for an additional 66 holiday apartments to be built on the property, some of which will be on woodland.

Sen. Swan raised concerns the concessions might just enrich private individuals.

He added: "Large chunks of our land are being handed over to private enterprise. I am not sure that's a thing Government should be doing at this stage."

He said he had tried to see the plans for the nine-storey development but was told they had been misplaced.

But Sen. Bean said the apartments would have to be available for tourist use for six months a year for five consecutive years.

"It is not a residential unit and it is being monitored by the hotel inspectors."

The Opposition also raised concerns about the lack of training going on at the hotel.

Under their lease, Coco Reef is required to carry on the training once provided by the Stonington Beach Hotel facility, but answers to parliamentary questions indicate that just ten students were trained there between the summer of 2003 and the end of 2005.

Sen Bean said; "Coco Reef over the last few years has been training three to four Bermuda College students and in the summer allowing them to function in different areas."

Premier Ewart Brown shut down discussion on the Hotels Concession (Coco Reef Resort) Order 2008 in the House of Assembly a fortnight ago after Opposition MPs made repeated calls for more information on what led to the order and details of the original lease between Government and hotelier John Jefferis.

Government granted former Elbow Beach managing director Mr. Jefferis a 50-year lease to manage the Paget resort — formerly the Stonington Beach Hotel — in 2003 after it became financially untenable as a hospitality training facility.

Auditor General Larry Dennis launched an inquiry into how the contract was tendered and in July 2004 concluded that the tendering process had been compromised.