Any attempts to turn the screw on international business to find cash for Government projects will damage the economy -- and hurt charities which depend on cash from companies to survive, Opposition leader Pamela Gordon said yesterday.

Ms Gordon said: "It's totally unacceptable for the Government of this country to try and strongarm the international business sector to commit funding -- it's increasing the cost of doing business in Bermuda.

"If international business wants to be philanthropic, that's fine -- but when you have a Government seeking money all these charities would be receiving because the Government itself are overspending the taxpayers' money and don't have enough for their wishlist...

"They're attempting to break into the coffers of international business and that's wrong.'' Ms Gordon hit out after claims that Government had asked the international business sector to chip in to help buy a luxury home near Hamilton to house the Ministry of Tourism -- allegations denied on the floor of the House of Assembly by Premier Jennifer Smith and Tourism Minister David Allen.

The Opposition leader said that many charities got no funding from Government -- and any bids to cut into the international sector by Government would lead to donations elsewhere being slashed.

Ms Gordon said international business had already been asked to buy into a bond issue at half the going interest rate to help fund the building of affordable houses by the Bermuda Housing Corporation -- which was effectively a donation to Government.

She added: "People are not sure -- because it's the Government -- whether they are obligated to give.

"It's making them uncomfortable and it can't bode well for this country and the reputation we have so carefully built over the years.'' The Royal Gazette's sister paper the Mid-Ocean News reported on Friday that an unnamed member of the business community had said he had received a letter from Cabinet Office asking for donations.

The report claimed that the Ministry of Tourism was looking at Craigmore, an estate off Pitt's Bay Road, currently on the market and the former home of Canadian financier Christopher Ondaatje.

Both the Premier and Mr. Allen called for the letter -- which they insisted did not exist -- to be produced. Mid-Ocean News Editor Tim Hodgson on Friday stood by the story.

Mr. Allen, however, told MPs that the Ministry's offices were cramped and had no boardroom table, so Government was looking at acquiring new offices.

He added Government had looked at "all sorts'' of properties, but no firm plan had been drawn up -- although he said "premises befitting one of the two more important industries'' were needed.'' TOURISM TOU