America's Cup has vanished.

Tourism Minister David Dodwell yesterday confirmed that his department would not be supplying the $10 million asked for by a local group headed by Francis Carter to support the project, which was to involve top American yachtsman and four-time champion skipper, Dennis Conner.

Explaining that there was little hard evidence of benefits such a challenge might bring to Bermuda, Dodwell said there was no way he could justify the expenditure from public coffers.

"We have reached the conclusion that it's a huge investment at this point that we can't justify,'' said Dodwell. "They're asking for $10 million over three years, which is 30 percent of our one-year budget of $30 million or 10 percent over three years.

"Frankly, the difficulty is that we have no economic model or any feasibility study that can justify this. It's very speculative, but when you have accountability for public funds you have to be able to measure return.

"Our view is that while it may be a good opportunity for Bermuda, we feel that the taxpayers' money should be used in other areas.'' The Minister also expressed concern regarding other aspects of the project.

He openly wondered whether $10 million was a final figure or might Government leave themselves open to the prospect of having to provide more funds later on if difficulties arose.

"What if somewhere down the line that $10 million is not enough? And what if we have trouble getting the boats finished or can't get them to Australia? Then what happens?.'' Carter, credited with coming up with the idea of forming a Bermuda Challenge, was understandably disappointed at its collapse.

A February 27 deadline had been laid down for securing funds in order that Conner could set up residency in Bermuda. Rules of the competition require the helmsman for participating syndicates to have been resident of the country he represents for a period of three years prior.

The regatta is due to start on the said date in Auckland, New Zealand, in 2000.

"It would have been the biggest thing to ever happen to Bermuda, especially if we'd won the Cup, it would have been the biggest economic impact the Island ever had. It's an opportunity lost,'' said Carter, who viewed the challenge not as an expenditure, but as an investment for Government, one that would have returned the value many fold.

Asked if there might still be a way of finding funds, whether from the corporate or private sector, the businessman and avid sailor said it was highly unlikely as the America's Cup was not a viable vehicle for promoting individual companies or firms.

"To my way of thinking, at this stage there's just no way it's going to happen, so for all intents and purposes, Bermuda's America's Cup Challenge is dead.''