STAFF REPORTER NEW hopes for signs of life in the construction industry on Majorca were dashed yesterday when Pollensa Town Council refused to grant building permits for a family house development in Formentor, if there are no drainage installations in place.

Last month, the Balearic Parliament had approved emergency measures to kick start the construction industry which in theory would have allowed housing developments to go up without other infrastructure that the homes would require - such as electricity and drainage - previously being in place.

However, Pollensa's Mayor, Joan Cerda, explained that technical experts examining the Parliamentary bill, have pointed out that such license could only be granted to developments where self-contained cesspits would be used, in circumstances where there would be no need for properties to be connected to mainline drainage. This is not the case with the housing complex at Formentor.

The Council's decision is also affecting plans by developers and management giants, the Grupo Barceló who are aiming to reform and extend the Hotel Formentor in several different phases. The first is scheduled to start after the end of the present tourist season.