deemed unnecessary by the Environment Minister.

Lawyers for developer Mr. Kevin Petty have filed a Supreme Court writ challenging the Hon. Ann Cartwright DeCouto's rejection last month of his plan to build 40 condominiums west of Gibb's Hill Lighthouse.

The Minister rejected Somers Villas' plan saying it could not be justified given overbuilding in the real estate market and the large number of vacant homes.

"In my opinion, we cannot justify the further subdivision or development of large parcels of land without assurance that it is needed to meet a local need,'' the Minister said in a six-page letter of rejection.

The statement was supported by statistics showing: 580 condominiums approved but not yet constructed; 350 condominiums awaiting development approval; 893 "dwelling units'' approved but not completed; 371 condominiums vacant by the 1991 Census Report; and 2,133 subdivided vacant lots as of August 31, 1992.

Mrs. Cartwright DeCouto acknowledged Somers Villas' proposal satisfied all Planning requirements and was on land zoned for development.

But that did not in itself mean automatic approval. The "lack of perceived need'', she said, was a legitimate ground for refusal.

Mr. Petty, in a statement yesterday, said there remained a need for new condominiums despite the apparent housing glut.

"Many of the existing unoccupied units currently on the market are unsold for reasons other than a glut,'' he said.

"Some have been built too close together, are poorly designed, and some are far too over-priced... even in a buoyant economy a considerable proportion of the available housing stock would remain unsold.

"The new Development Plan recognises that there will be a demand for housing over and above the existing situation and anticipates a need for at least 1,600 units during the next ten years.

"We believe that St. Anne's Road is an ideal site to accommodate a small proportion of that need and we have appealed the decision to the Supreme Court as our next step.'' Mr. Petty's statement is the latest turn in a controversy that began more than three years ago when he proposed to build 100-plus condominiums in the valley between the lighthouse and Southdown Farm.

Objectors fought the plan which was eventually trimmed to 40 units on 4.5 acres of the 12.6-acre site. The remaining land was to be protected forever by agreement.

In 1991, the Planning Department and the National Trust said they had no further objections.

That June, the Development Applications Board rejected it, saying there was "strong evidence to suggest that the existing stock of housing is sufficient to meet Bermuda's current and short term needs.'' Mrs. Cartwright DeCouto's September letter upheld Mr. Petty's appeal of that decision.