well, its owner said yesterday.

"It's a tragedy for the Island in that we do need new products,'' Mr. Harry Soares MP told The Royal Gazette .

Many factors had combined to hurt the submarine Enterprise , Mr. Soares said.

This summer's weather had been "atrocious,'' and his duties as a Government MP had kept him away from his tour operator duties too much.

While the submarine is certified and ready to dive, "there are a tremendous amount of fixed costs'', Mr. Soares said.

The annual refit required for certification costs about $120,000 and the insurance tab for the year is $110,000, he said.

Those costs were acceptable in warmer climes like the Cayman Islands, where a sub could be operated all year, he said. But in Bermuda, the peak season was not long enough to recover costs and make a profit.

Mr. Soares said he had been in talks about a possible sale of the submarine to a buyer in Cuba, but so far no deal had been struck.

He does plan to operate other boats his company owns, including a glass bottom boat for which a liquor licence hearing is scheduled this morning.

And Mr. Soares -- who has reportedly lost millions on the submarine and in 1992 resigned from Cabinet to devote more time to it -- said he is about to open an office at Albuoy's Point in Hamilton, to take tour boat bookings.

Employees of the submarine were able to find other jobs, he said.