extended for another year.

Members of Parliament voted unanimously on Friday to continue a duty break on materials used for hotel refurbishment until November, 1993. Under the scheme, hotels can pay just 5 percent duty on goods used for refurbishment.

The idea was to encourage hotels to upgrade their facilities, help them through cash flow problems, and to "give a shot of insulin'' to the construction industry, Finance Minister the Hon. David Saul told the House.

So far, 29 hotels have been granted relief totaling $959,154 on imports with a total value of $5.4 million.

"The scheme seems to be working very well,'' Dr. Saul said, adding it was unfortunate that many small properties weren't taking advantage of it.

Shadow Finance Minister Mr. Eugene Cox asked what the target was. And he asked whether small properties had been adequately informed of the programme.

Tourism Minister the Hon. C.V. (Jim) Woolridge said he welcomed the extension.

"The importance of Bermuda having the highest possible standard of accommodation and service can't be over-emphasised,'' he said.

Small hotel properties are aware of the programme, he said, but many have a cash problem so aren't using it.

He said CBS News had an item about the about of debris and pollution at Mediterranean resorts, and quoted people saying that the number of tourists should be limited. "Bermuda has been doing it for years,'' he said. "We are the pace-setters.'' He also said that, last week, former Jamaican Prime Minister Mr. Michael Manley, speaking to the Caribbean Tourism Organisation conference in the Bahamas, had stated that "Bermuda had taken the lead in limiting the number of cruise ships to protect its amenities''.

National Liberal Party Leader Mr. Gilbert Darrell said he approved of the tax break. He suggested that the original Customs entry could be for 5 percent, rather than the full amount with a refund applied for later. And he asked why boats were specifically not included, even if they were for the hotel's operations.

Shadow Environment Minister Mr. Julian Hall said the PLP had no objections to the bill and supported its principles "wholeheartedly.' He described the abandoned Bermudiana Hotel in Hamilton as "an ongoing eyesore'' and asked for an update on what is taking place with the property.

"Its becoming an increasing eyesore,'' he said. "...It's increasingly becoming a monstrous carbuncle and, quite frankly, a blight on the city landscape.'' Mr. Walter Roberts (PLP), who owns the Somerset Bridge Hotel, said small hotels -- like all hotels -- have cash flow problems. They have been encouraged to upgrade. Many have not applied for relief because they want to submit a consolidated application which would include all their imports for the year.

Dr. Saul said there had been some discussion with the hotels when the measure was first introduced, and they estimated that between $3 million and $6 million in imports might qualify. The $5.4 million could therefore be described as "on target''.

The Hon. David Saul.