Ruling party Senator and Bermuda College Board Chairman Raymond Tannock yesterday defended the controversial Stonington Beach deal with Coco Reef Resorts as the right thing to do for tourism and the Bermuda College.

Stonington had been bleeding money to the tune of $500,000 for years, he said, and it was decided to move the property to the Tourism department.

"Therefore the College Board could concentrate on their role in education."

He said that Government had faced a dilemma when it came to power in 1998. "It was not a first class facility, the students did not want to go there for their training..."

Sen. Tannock added that Government had set about improving hotel properties on the Island through the Hotel Concessions Act.

And speaking specifically about the Coco Reef deal he said Government was not giving anything away.

"The property belongs to the people of Bermuda," he said. "The property is going to be enhanced, the property remains with us... We were losing $500,000 a year."

Sen. Tannock was responding to Opposition Senator Leonard Santucci who harshly criticised Government over the deal. He reminded the Senate that he had suggested that an enquiry take place over the deal and that the entire College Board should be fired.

"Whoever signed that lease in my humble opinion has pillaged, plundered and prostituted the wealth of this country," he said.

"It appears as if somebody thought it not robbery to give to the tenant things over and beyond" what was expected from others who had been interested in the property.

"In addition to what was initially tendered they become the beneficiary of 3.9 acres of prime property" valued at some $8 million.

"Whoever signed that lease thought it not robbery to waive the rent," Sen. Santucci continued, referring to a five year waiver of the rent valued at $600,000 a year. "You have to be concerned about the value of a signature and what we have given away." And he suggested that any profit sharing consideration was practically worthless because "you can always lower your profit margin by consultancy fees."

He added : "I believe that we need, if nothing else, to find out how much this agreement has cost us."

Sen. Santucci also criticised the fact that the College will remain liable for any damage done to the property by the hotel group.

"I signed the lease on behalf of the Government," said Sen. Tannock. He said that Government would not have gotten any rent for the property "if it was not a first class facility" and that Coco Reef had sunk millions of dollars into improvements.

"It didn't just require a paint job. There's no doubt in my mind that - if anyone's been over there to see the work that's been done, if they are not impressed I'd like to know where they have been."

He said the additional land had been handed over for the security needs of the resort.