An environmental group has launched legal action against Government in a bid to halt a controversial multi-million dollar hotel development.

Save Open Spaces has issued a writ against the Environment Minister challenging a decision to allow work to go ahead on reshaping part of the Castle Harbour golf course.

The golf course changes are the first phase of multi-million dollar plans to build a new clubhouse, homes and other facilities on Ship's Hill designed to give a boost to the Castle Harbour Hotel.

Yesterday Ian MacDonald Smith, of SOS, said: "It is necessary to take this as far as we can go.

"I do not think we are fighting a losing battle. There are some issues here for which we believe we need legal opinion.'' Last year Bermuda Properties Ltd. gained permission to alter part of the Castle Harbour Golf Course.

SOS appealed against the decision and last month the then Environment Minister Pamela Gordon ruled against their appeal and allowed BPL's plans.

The group filed a writ last Friday which said `In the matter of the Development and Planning Act 1974 and in the matter of an appeal from a decision of the Minister of the Environment dated March 21 1997, Ian MacDonald Smith suing on behalf of himself and members of SOS'.

If the writ is successful it will force the new Environment Minister Irving Pearman to re-examine the case.

However according to Mr. MacDonald Smith it could also lead to a legal test of the Bermuda Properties Act, under which BPL operates.

Mr. MacDonald Smith said the Act specified that if a golf fairway is to be altered and turned into something other than a fairway permission must first be given by the House of Assembly and the Senate.

"That has not been done and we are looking to test that out,'' added Mr.

MacDonald Smith who claimed the golf course plans were crucial to the scheme as a new clubhouse would be sited on part of an old fairway.

The writ is the latest twist in the long-running saga over the development of Ship's Hill.

BPL wants to build new facilities as well as luxury homes on the site which it says will help boost the Castle Harbour Hotel.

Environmentalists say the development will wreck a sensitive area of Bermuda and its underlying caves which are home to endemic species.

Last night Mr. Pearman said: "If a writ has been issued that has to be studied by the Attorney General's chambers with input from the Ministry. At the moment that is all I can say.'' GOVERNMENT GVT