heard on Friday.

The news came after Shadow Finance Minister Eugene Cox quizzed Finance Minister Grant Gibbons on the outstanding cash.

But Dr. Gibbons said Government had not made a decision on whether it would wipe the slate clean or try and recover the money.

Government gave loans totalling $1.27 million to 31 hotels in October, 1985 to cover tour vouchers that were issued to visitors by the defunct Halmar, Haley/Martin companies.

The cash was forked out so hotels could honour prepaid travel vouchers to avoid damaging Bermuda's reputation as a tourism destination.

The Finance Minister told the House that he had answered a similar question in March and that the situation had not changed since.

He added that Mr. Cox had asked for a list of the hotels and the amounts lent to them in March which he had provided. Some of these hotels had gone out of business, he added, while others had reported losses of millions of dollars and were not in any position to pay back their loans.

Mr. Cox said later that he asked the question because people were wondering whether Government intended to write the money off or collect it in due course.

"More importantly, are they looking at this on a periodic basis?'' he asked.

Mr. Cox stressed promises should not be made in the House of Assembly and then forgotten about.

And he claimed more than 20 percent of these funds went to the Grotto Bay Hotel.

He asked Dr. Gibbons if "any members of this House who were then serving as members of the Cabinet were shareholders of note in Grotto Bay Hotel or its beneficial company''.

Dr. Gibbons replied the Finance Ministry had no evidence of this.

Mr. Cox later said he did not feel this was a satisfactory answer and revealed he intended to follow up on the matter. Mr. Cox then turned his attention to the 60/40 rule -- which guarantees ownership majority in firms by Bermudians -- and asked Dr. Gibbons if he would be making a statement to the House of Assembly on this subject "given the difficulty that can be caused from the lack of a clear direction in economic matters''.

But Dr. Gibbons hit back: "There is no lack of direction in economic matters.'' And he stressed: "Government has no plans to change the Third Schedule to the Companies Act and as a consequence I have no plans to make a statement tot this House on the 60/40 rule.'' TOURISM TOU