The PLP Government has hit "a new low" by tolerating Tourism Minister David Allen's false claim that The Reefs was about to go bust if it did not get relief under the Hotel Concessions Act, Shadow Tourism Minister David Dodwell claimed last night.

Mr. Dodwell said he was appalled that Mr. Allen had wrongly suggested in the House of Assembly in "unfortunate and reckless comments" that he had intimated in a telephone call that his hotel would close if it didn't get concessions.

Mr. Dodwell, the President of The Reefs, said the hotel was in a healthy position and the remarks had caused great distress to staff, guests, bankers and creditors.

In an angry attack on Mr. Dodwell on Friday during the motion to adjourn, Mr. Allen said: "That member was going to go bust without the Act."

Last night Mr. Dodwell said: "I believe strongly the PLP government has reached a new low in Bermuda when it allows a Cabinet Minister to make such accusations in public for, presumably, his own perceived gain. Professional ethics and common courtesy have been disregarded.

"There was absolutely nothing in my conversation with Minister Allen that could have been construed as suggesting The Reefs would go `bust' as the Minister pronounced. Minister Allen completely misrepresented this in his remarks on Friday night and did a great disservice to the truth.

"The question in people's minds should be: `Who will be next?' And what damage will be done to Bermudians, business and our reputation?

"It is both sad and reprehensible that a `responsible' public figure such as the Minister of Tourism, and by extension the Government, would stoop that low for personal and political advantage."

And he repeated his "categorical" assertion that the multi-million dollar redevelopment of the Southampton property was "absolutely not dependent" on the passing of the Concession Act, and that the bulk of the work had been "designed, financed and completed three months before my conversation with the Minister".

Mr. Dodwell said for Mr. Allen to claim he had said the hotel would go bust without the Concessions Act was "a complete misrepresentation of the facts and is totally untrue".

"The Reefs is not going bust and is not on the verge of closing. In fact, quite the contrary, the hotel is financially solvent, has had a long period of successful operation, has won many awards here and abroad, and all indications are that it will continue to rate as one of the most successful hotels here in Bermuda.

"I am deeply appalled at Minister Allen's irresponsible and false remarks, and the uncertainty and concern created amongst my staff, guests, family, bankers, creditors, directors and the fine reputation of The Reefs.

"Valuable and substantial time has been spent reassuring them and stemming their natural worries and concerns."

Mr. Dodwell added: "I would like to point out that The Reefs has not yet received a cent - except duty relief that was available under the existing 1991 Duty Relief Act - from the Hotel Concessions Act.

"If The Reefs was going to go bust without the Concession Order, as Mr. Allen alleged, we would have closed our doors by now."

Mr. Dodwell said he would not shirk from his responsibility to praise or criticise Government policy. "Bermuda deserves, from all its Members of Parliament, individuals who will not be deterred by threats and fear of retribution".

Mr. Allen issued a statement yesterday saying Mr. Dodwell had "misled" the House of Assembly if he suggested the Concessions Act was not important to the financial position of The Reefs.

But he did not withdraw his assertion stated in the House that he gleaned from the telephone conversation that The Reefs would close if it did not get a Concession order.

Mr. Allen said: "The reason the shadow spokesman for Tourism was taken task by myself after his remarks on the motion to adjourn was because he has once again interpolated, as he has on numerous occasions in the past, that the improvements made to his hotel, The Reefs, would have been made regardless of the incentives provided by Government's (Hotel Concessions) Act.

"It was Mr. Dodwell's decision to introduce this point into the debate. He made his statement after I pointed out it was inaccurate of him to say Government had not helped fund on-Island product enhancements when his own hotel had benefited from such funding.

"Indeed, his on the record conversation with me last summer had emphasised the importance of the concessions to his hotel's financial position. To say otherwise was to mislead parliament.

"It is grossly misleading of The Royal Gazette (in an editorial opinion) to state that Mr. Dodwell was taken to task because he was exercising his right to criticise Government policies. He does not, however, have the right to mislead the House."