Social Services has no plan to "pull out'' of the Canadian Hotel -- as reported in the latest edition of the Bermuda Times, Social Services director Mr. Richard Voss said yesterday.

Mr. Voss conceded Government was looking for a new facility to house homeless people on social assistance, but it would not be moving out of the city hotel altogether.

He said after the new facility is acquired, Government will continue to rent rooms for any homeless person who wants to stay at the Canadian Hotel, or does not require the programme which residents of the new 10-15 bed residence will be required to enrol in.

Health and Social Services Minister the Hon. Quinton Edness said Government had a new residence in mind and negotiations were underway to get it. But he declined to name the site.

Mr. Voss said acquiring a new residence is part of the department's plans to "improve the overall situation for Bermuda's homeless''.

Already, he said, approval had been given to get 20 new beds at the Salvation Army night shelter.

"We will still be using the Canadian Hotel for any homeless person who wants to live there by the week or month and may not need the programme which will be a part of living at the new facility,'' he added.

Social Services currently rents one wing of the Canadian Hotel from owner Mr.

Thomas Powell as a halfway house for up to 15 homeless men and women between the ages of 21 and 65. It has rented the wing at $450 a month for each tenant since 1985.

According to the Bermuda Times article, Social Services was "pulling out in response to mounting criticism about alleged disgraceful and hazardous conditions of (the hotel's) facilities''.

Acting Social Services director Mr. Alan Robinson was quoted as saying the department has heard "rumours'' of drug dealing and abuse on the Reid Street property.

Owner Mr. Powell responded to the article by saying the property had recently been renovated and he had no plans to further renovate it. He said Government rents only 15 percent of his rooms.

Mr. Voss said the hotel "has been subject to some criticism, but serves a purpose''.

And Mr. Edness said the department had had no problems with Mr. Powell. "He completed his part of the deal by doing what he was contracted to do.''