Fears over St. George's cruise ship deal
scuppered.
It is believed a battle between the two firms backing Royal Majesty could torpedo the plans.
The doubts about the deal were expressed by the Progressive Labour Party.
Meanwhile, Tourism Minister the Hon. C.V. (Jim) Woolridge said the ship would arrive as planned.
But he admitted he was against the idea of a fifth cruise ship all along.
Other cruise lines believed it would not be financially viable, he said.
Shadow Tourism Minister Mr. David Allen told a Press conference on Friday that St. George's could end up a loser -- even if the deal went ahead.
He feared the dispute between Majesty Cruise Line and Boston-Bermuda Cruising could erupt in a bitter court battle.
And he believed it could damage attempts to sell the ship to possible passengers.
He said the original plan was for Boston-Bermuda to promote the ship, and sell it with the help of tour operators.
But the firm appeared to have stopped functioning in Boston.
He voiced concern about a possible legal battle between the firms.
Boston-Bermuda could take court action to stop Majesty Cruise operating alone, he told reporters.
"They could take out an injunction. That is the fear.'' St. George's North MPs Ms Jennifer Smith and Mr. Leon (Jimmy) Williams added the East End had built up hopes over the ship, and merchants had spent a lot of money sprucing up their businesses.
Last November, Government signed a 10-year deal to bring Royal Majesty to Bermuda.
Boston-Bermuda was to lease the vessel from owner Majesty Cruise Line, which has offices in Miami.
On Thursday, Boston-Bermuda president Mr. Stanley Buchin admitted a "contractual dispute'' between the two firms.
But he believed it had been resolved, and expected a "revised charter agreement'' shortly.
Majesty president Capt. Paris Katsoufis, however, said the deal with Boston-Bermuda was off.
And he revealed his company was planning to demand damages from its ex-partner.
In the House of Assembly, Mr. Woolridge told MPs: "I am pleased to report that projections for the cruises from Boston to Bermuda are good according to industry sources.'' "The Government last November successfully concluded negotiations with and signed an agreement with Majesty Cruise Lines to provide regular scheduled weekly cruises between Boston and Bermuda commencing May 1994.
"It is true that one of the recitals to the aforementioned agreement recognises a charter arrangement between Majesty Cruise Line and Boston-Bermuda Cruising, but the Government is neither party to nor is privy to any of the details of that arrangement.
"The Government nonetheless has assured itself that Majesty Cruise Line is a company capable of operating with or without any charter agreement.'' Mr. Woolridge slammed Mr. Allen for suggesting Government chose Boston-Bermuda as the "charterer'' of Royal Majesty .
It had always been planned for Majesty Cruise and Boston-Bermuda to take part in marketing and selling the cruises.
Majesty Cruise could take advantage of its "extensive sales force outside of the northeast region''.
"It might be interesting to note that Miami is the headquarters capital for all the other cruise companies serving Bermuda and, therefore, it is not at all surprising that Majesty Cruise Lines is able to operate from that city as well.'' Mr. Allen retorted that the deal was now a "fiasco''.
Referring mockingly to the fate of the Sally Albatross , ironically that night, he said: "The Tourism Minister has hit an iceberg. He is well and truly grounded. He has bungled this whole thing.'' He wanted "truth and accuracy'' from Government, not a "snow job''.
Mr. Woolridge replied this was a "ridiculous outburst''.
He revealed he had not been in favour of a fifth cruise ship -- and nor had the cruise lines already serving the Island.
"Each one was given the option of supplying a ship for the Boston-Bermuda run. They all said it would not be viable.'' He recounted the "challenges'' involved in setting up the present deal. Legal advisers had told Government it would be better to have the principal agreement with Majesty, the owners of the ship, he said.
Boston-Bermuda Cruising had only been involved for the marketing of the ship.
They had failed to do that, so Majesty would take over.
"The ship is being marketed well and bookings are coming in. The agreement is between the Bermuda Government and Majesty cruises, and they will be on time.'' He was not concerned about Boston-Bermuda chairman Mr. Arnold Mende "and those people'', he said. "They are just players who didn't come through.'' Opposition leader Mr. Frederick Wade said the Minister had been "shouting and screaming'' Mr. Allen down and trying to rewrite history.
Brandishing a copy of the fifth cruise ship contract, he said it was clear that Boston-Bermuda had a "very, very important'' role.
Parties to the deal were Government, Majesty, Boston-Bermuda and General Ship Cruising Co., he said.
The Minister had neglected to keep the House informed of problems with the arrangement, he said. Mr. Allen had done his duty by revealing the situation.
"We told the Minister so last year, that the principal in this contract was shaky financially and had a shady background.'' The PLP had warned Government to be careful. "But it was so anxious to get a ship for St. George's around election time that it threw caution to the wind.''
