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Webb feels the heat as tempers flare over Stonington deal

Tourism Minister Renee Webb

Parliament was the scene of high drama yesterday with angry exchanges between the Opposition's Trevor Moniz and House Speaker Stanley Lowe during question time.

Tension began when Mr. Lowe refused to allow Mr. Moniz to ask Health Minister Patrice Minors if she would resign if Bermuda's recalcitrant registered charities continued to flout the law.

And, in a subsequent series of questions on the disputed Stonington deal with Coco Reef resorts, Mr. Moniz expressed his dissatisfaction with Tourism Minister Renee Webb's answers by interjecting "people want to know".

At that point an exasperated Mr. Lowe, who had already warned Opposition Leader Grant Gibbons to avoid speeches and stick to questions, threatened to eject Mr. Moniz from the House.

"I think I'm going to send you out for the day," Mr. Lowe said.

"People want to know. If you are going to send me out, send me out," Mr. Moniz replied with a raised voice.

At this point both the Speaker and Mr. Moniz were on their feet in a direct face-off.

"Take your seat," demanded the Speaker. "Take your seat".

Mr. Moniz eventually sat down. But only Dr. Gibbons and Shadow Sport Minister Jon Brunson remained in the House for Finance Minister Paula Cox's introduction to the National Pension Scheme regulations which was the next item on the agenda.

Ms Webb had delivered a lengthy statement addressing concerns with the Coco Reef deal earlier during the sitting.

When it came to question time, she was subject to a series of questions supplementary to the Opposition's three prepared questions ? all of which she had to answer in the Chamber.

Asked why the lease was extended from 21 years to 50 years, Ms Webb said that the agreement was between the Bermuda College and Coco Reef, and her Ministry had no part in it.

Originally the negotiations were working on the assumption that only a 21 year lease was permitted by law, she said.

"However, when it was realised that 50 years was allowed under the Companies Act, and in the interest of tourism and the tourism product, it was determined to offer Coco Reef a 50 year lease."

Dr. Gibbons then asked why the lengthened lease term was not spelt out in the tender process, if the College was willing to extend the lease.

"All of them (the interested parties) wanted a longer lease. It was not deemed possible until the negotiations started," Ms Webb said.

To which Mr. Barritt asked : "Why did they not go back (to tender) ?"

"What part did you not understand ?" a frustrated Ms Webb asked before repeating her explanation.

Asked by Dr. Gibbons whether there was any "memorandum of understanding or side letter" with the resort company, Ms Webb said : "There is no side deal, no side backroom deal or anything..."

The Opposition Leader's next question tried to determine whether Coco Reef had stipulated any terms with regard to the development of the Stonington property.

Ms Webb said that there had been no stipulations but that the company was required by the lease "to completely renovate and upgrade" the property and "reposition it as an up market boutique ocean front hotel".

She then outlined development and renovation projects required under the lease, adding " the lease does address the construction of villa units provided that such development is within the guidelines, rules and regulations of the Bermuda Planning Act."

Asked whether she would be willing to table the lease in the House, she said that question was better directed to the appropriate Minister.

Asked whether an agreement had been made that Coco Reef would spend $9.9 million on 30 villas which could be converted to condominiums and sold, Ms Webb said "No, that's not true, however..."

At which point Education Minister Terry Lister interjected with "sit down, the answer is no."

And in response to another question regarding further discussions with Coco Reef, Ms Webb said : "I have no idea where he's getting these questions from. The answer is no."

And she reported that Coco Reef had, over the past nine months, completed most of the required renovations and spent close to $6 million, when asked what the total investment had been to date.

Dr. Gibbons then asked what additional benefits the College was set to derive from Coco Reef's undertaking, as reported by the Auditor General, to spend $12.9 million on upgrading the facility, in exchange for a five year rent free period and a 50 year as opposed to a 21 year lease.

"I talked about a number of benefits," Ms Webb replied.

Government would own a completely refurbished hotel and would save $10 million over the five years .

"If you do the math, Mr. Speaker, that comes to $22 million," she said.

"We are getting a first class hotel that Bermudians can be proud of, and not the mediocre property that we had before. We are getting a hotel that the Government will still own at the end of the day... I could go on and on about the benefits."

A ruling party backbencher then asked whether Government had any other similar leases.

"We are negotiating with Club Med which we hope to sign very shortly," Ms Webb replied. "We also have a lease for Daniel's Head, but since David Dodwell is involved I don't expect any controversy."

And asked why a requirement to have hospitality students train in Tobago was not part of the agreement, Ms Webb said: "There is a training component not only to train students here in Bermuda, but also in Tobago."