A plan to turn Stonington Beach Hotel into a profit-making resort once again has recommended a $1.3 million boost -- from Bermuda College.

And the report, prepared by a management consultant contracted by the Government-run hotel, suggests staff cuts and other economies to turn the troubled facility around.

Consultant Charles Leon O'Brien, who worked at the Paget hotel for nine months preparing the report, suggests that $968,000 paid in rent over the last three years be credited back by Bermuda College. And he also stated that a long term debt of $420,000 owed to the college should be written off, because the hotel has been paying a higher employment tax.

Mr. O'Brien, who is currently involved in a legal battle with the Bermuda College board of governors for money he claims he is owed for the work, believes some of his recommendations may appear in a future blueprint for the property.

Bermuda College board of governors chairman Randy Horton said: "He was hired as a consultant and we made progress as a result. There are some things we may move on.

"I am just shocked that he would bring this to the press, he must have some kind of personal agenda.'' Mr. Horton said he did not want to comment further at this time. Stonington general manager J.P. Horst is off the Island.

In May Mr. O'Brien presented Mr. Horton with a brief which set out measures which he believed could turn a $232,000 loss in 1999 into a $460,000 profit this year, and a possible projected profit of more than $1 million in 2001.

In the report written for Mr. Horton, he says: "What we know is that the vision for Stonington must be clear and effective management must be installed.

Report urges $1.3m boost for Stonington "Today we face challenges that have arisen from the past. While there are new challenges also, we cannot dismiss the fact that we inherited a tremendous burden.

"We pledge to do our utmost best to reverse the trends that have failed us.'' To save money, Mr. O'Brien's report suggested the board apply to Government to have its payroll tax reduced to a 4.5 percent rate paid by educational institutions -- saving $135,000 a year.

He also recommended that Stonington tighten up its accounting practices, including the collection and payment of bills, sign a contract with the Bermuda Industrial Union and improve staff morale by implementing an "open door'' policy.

In addition, he claimed wage cuts between November 1999 and February this year had saved $305,000, energy savings of $100,000 had been made and revenue had been increased by putting gratuities and a resort levy on guest bills.

Other recommendations included splitting gardening costs with Bermuda College, halving training bills with the National Training Board and re-assigning the security contract.

Another proposal is to let Bermuda College take over the hotel's Norwood dining room and bar -- using college infrastructure and staff, leading to a 30 percent payroll cut.

The report also highlights a long term debt accrued by Stonington for non-payment of rent, saying it was an anomaly because the College owns the hotel.

In addition, it says rent be reduced from $25,000 to $15,000 a month, saving $120,000 a year and helping the hotel to become a five diamond property.

Other plans include upgrading rooms and converting some accommodations to suites, attracting more business clients and boosting group bookings.

A recommendation already instituted gave benefits including use of hotel facilities and discounts on food to Government personnel and college hierarchy