Bermuda's top hotels could be ready to quit the Island because of a "business suicide'' plan by Government.

Elbow Beach General Manager Bill Shoaf, an American, has only been granted a six-month extension on his work permit -- "subject to certain conditions''.

Now Shadow Home Affairs Minister Michael Dunkley has hit out at the PLP Cabinet following the ugly dispute with the hotel's owners.

And he warned: "What the Government is doing...you could call it business suicide.

"Investment will be lost and businesses will go down here.'' It is understood Mr. Shoaf has had a series of run-ins with staff who dislike his style of management.

The hotel's Saudi owners, who pumped $60 million into recent refurbishments, have been told two other work permits for senior staff will not be granted because Bermudians have not been interviewed.

Saudi Arabia's Prince Khalid Bin Sultan, who owns the hotel, sent an aide to the Island to confront Government chiefs when he heard Mr. Shoaf's work permit might not be renewed at all.

The six-month permit was only granted after an emergency Cabinet meeting on Friday.

Home Affairs Minister Paula Cox confirmed Elbow Beach threatened to close but denied the Government had backed down.

She also criticised Press reports of the row, saying work permit applications should not be discussed in public.

But Mr. Dunkley said the public row was Government's own fault, because of its "inflexibility in dealing with this issue''.

He added: "The new owners of Elbow Beach have put millions and millions of dollars into the hotel and would seem to be poised to put millions and millions into the Belmont property.

"It was announced last week that Elbow was now a four-star hotel -- and we haven't had one of them for a long time -- but it will also be a long time before they get a full return on their investment.

"It's not very prudent for the Government to stand up and say: `We don't like to be threatened'.

"You have to ask if it is reasonable for the owners of a property to choose their own general manager so they can look after their investment.

"I don't know the full story behind Mr. Shoaf's problems but it seems there's a witch-hunt at middle-management level.

"I am concerned the hotel will get fed-up and say enough's enough. They will go someplace where they can have a say in how their investment is managed.'' `Business suicide' "The UBP has been strong for quite some time on Bermudianisation. We all want it. But the forced imposition of Bermudianisation won't work in any way.

"Everyone has to agree on the way forward together.'' Elbow Beach, employing 400 staff, is set to take over the closed-down Belmont Hotel.

Marriott's Castle Harbour Resort, employing 300, will close in November because of huge financial losses.

But Ms Cox, in a faxed Press release, said the dispute with Elbow Beach surrounded work permits for Mr. Shoaf and two other staff.

She said he had been granted a six-month extension "subject to certain conditions'' "There were some outstanding issues relating to his application that need to be addressed,'' she added.

"The other two work permits were not granted as there were Bermudian applicants who should be interviewed.

"We are prepared to work with hotels and all employers so that they can have the qualified staff they need.

"But we are not going to do this at the expense of jobs for qualified Bermudians. Due process must be followed.

"It is unconscionable that we should be threatened in this way. We did not back down.'' SUDDEN DEATH OBT Sudden death Police are investigating the sudden death of a 28-year-old Warwick man in a Devonshire home on Saturday evening.

A Police spokesman said Gerald Sinclair Henderson was found by a relative in a family apartment at 6 p.m. on Saturday.

Mr. Henderson was not breathing and efforts to revive him were unsuccessful.

He was taken by ambulance to King Edward VII Memorial Hospital where he was pronounced dead.

The circumstances of the death are not being treated as suspicious.

GOVERNMENT GVT