newly-refurbished Queen Elizabeth 2 cruise liner, in protest at conditions on board, will have their fares refunded in cash, according to Cunard Line chief executiveN Mr. John Olsen.

As he prepared to board the liner in New York after the crisis last month, Mr.

Olsen acknowledged difficulties, singling out plumbing as a major one.

The QE2 has just been refurbished at a cost of $46 million, but passengers complained of "building site'' conditions and closed facilities.

Between 300 and 400 contractors were still on board during the recent crossing from Southampton, England to New York.

Mr. Olsen said previously that Cunard, which is owned by the UK's Trafalgar House conglomerate, would expand by buying existing ships and forging marketing agreements with other companies, rather than by investing in a shipbuilding programme.

ROYAL VISIT -- The Queen Elizabeth 2 during a visit to Bermuda. The Cunard ship is seen here berthed at Dockyard.