A specific Government policy allowing a company behind a controversial development to sell luxury homes to non-Bermudians violates the spirit of the law, an environmentalist claims.

Bermuda Properties Ltd is to build 46 homes on Tucker's Point and Ship's Hill and sell them abroad.

The Government only allows certain homes -- with an annual rental value of more than $43,800 -- to be sold abroad, but it has added a new clause to its rules specifically allowing BPL to sell its homes to foreigners, as well as Bermudians, who can rent them out.

Chairman of the National Trust's environment committee, Mr. Tim Marshall, believes the new clause goes against what most right-thinking members of society would believe to be correct.

"This is a residental development for the foreign market. It flies in the face of Government's long-standing policy. That is what bothers so many people,'' said Mr. Marshall.

BPL announced the plans in June as part of a $65 million scheme to revamp the Marriott's Castle Harbour Resort. BPL is developing the homes on land it has owned since 1958.

At the time the plans were unveiled, BPL asked for permission to sell the homes abroad.

On July 12, the then Planning Minister, Mr. Gerald Simons signed a special development order giving the development the green light -without going to the Development Applications Board.

On September 1, the Government published its amended `Policy Statement and Notes for the Acquisition of Residential Property by non-Bermudians', which included a specific clause on the Castle Harbour Resort.

Part of the section reads: "This is a special policy to accommodate the unique development of residential resort facilities at the Castle Harbour Resort.'' Essentially, the Policy creates new categories to deal with the concept of a residential resort with villas and luxury homes, which are designed as condominiums, but treated outside the condo policy.

The Policy says: "Although the units are organised as condominiums for the convenience of the resort developers, they are luxury, purpose-built units for the very top end of the vacationer's market.'' Ordinary condos cannot be bought and then rented.

When the scheme was announced, BPL's president Mr. Ed Trippe said the homes complex would be targeted at international businessmen and would create much-needed activity at the hotel. "The whole of the hotel should benefit.'' And in a proposal to the DAB in June, BPL General Manager Mr. Peter Parker estimated the properties would pump $13 million annually into Bermuda's economy.

He worked it out on the basis that each householder would spend $500 a day and that the occupancy rate would be 70 percent.

Mr. Marshall added: "The Government says these are residential resort units.

That is nonsense. Anyone who has information on this knows full well that these have nothing to do with the actual hotel. It is amazing the Government is putting out this yarn,'' said Mr. Marshall.

"It is an extension of Tucker's Town and these units will be sold to very wealthy non-Bermudians. Let's call a spade a spade -- this is nothing to do with the hotel. This is a residential development and Government is putting its stamp of approval on it.'' He added: "A major piece of virgin land is being swallowed up, not for Bermudians, but for foreigners to have a nice view.'' However, Mr. Parker hit back at the criticisms saying Mr. Marshall did not understand the concept of a residential resort and added that his company made its intentions clear from the outset.

"It is for the benefit of the resort as a whole that they are available for short-term rental. It helps Marriott's -- the hotel's infrastructure will support all these units.

"Grounds maintenance, laundry, catering and food and beverages. All that will be purchased from the hotel and help sustain it.

"One of the problems here is that the traditional thinking in Bermuda does not incorporate room for this type of thinking. We have been trying to convince people in Government and planning that this is a successful method of operation all over the world.'' The Policy Statement was drawn up by the Ministry of Labour, Home Affairs and Public Safety and Department of Immigration.

Former Home Affairs Minister Mr. Irving Pearman is ill and was not available for comment last night.

The new Minister, the Hon. Quinton Edness, admitted last night that the clause was outside the previous policy but exceptions had been made in the past, specifically with Elbow Beach.

He also admitted that without the clause BPL might not have been able to go ahead with the scheme.

"When you look at the total concept of Castle Harbour it is for a total destination resort. We had to recognise that the tourism industry is shifting and one way it is shifting is to the total destination resort.

"This resort is going to have everything in it and once wealthy people buy these places they will have to spend their money somewhere,'' said Mr. Edness.

"It is happening in the Caribbean and we just cannot stand still.''