Government watchdogs.

The plans, by businessman and Evangelical Church member Mr. Fernance Perry and his wife, involved space for 140 Christian campers on tiny Grace Island.

Members of the Development Applications Board decided the plans went against rules preserving natural beauty and open space on the six-acre island.

But Mr. and Mrs. Perry are to appeal against the ruling. They say the plans involve building on less than one percent of the island and would improve its natural beauty, not damage it.

The plans involve a 22-room campers' building and a two-room janitor's cottage, plus recreation, kitchen, dining, porch and storage areas. The single-storey buildings were expected to take up 12,500 square feet.

The island would have been used for Christian camps and retreats, and made available to other organisations when the church was not using it.

Mr. Perry, who has owned the island for 30 years, has now put it into a non-profit trust which would lease it to the church.

Applications Board members decided the proposal went against rules preserving natural beauty and open space " by virtue of its extent, visual impact, impact on the natural setting of the island and the intensity of the use for which it is intended''.

"The natural beauty and visual prominence of Grace Island are important to the open space needs of Bermuda.'' board members said. No further significant development was considered appropriate on the Great Sound islands, they said.

The board's decision was welcomed by the National Trust, which objected to the plan. "We're pleased to see no development on it,'' said environment spokeswoman Mrs. Anne Steele.

But Mrs. Perry last night defended the plans. "We need it to be a nature sanctuary for our purpose,'' she said.

"We have plans to beautify the island and make it a nature preserve. We are only going use a small proportion of the island for the camp site, and the rest will be trails through a nature reserve.''