Premier Ewart Brown's statement that plans for a luxury hotel at Morgan's Point have not met Cabinet approval could send the wrong message, Senator Michael Dunkley said yesterday.

He spoke after the Premier, who is also Tourism Minister, said Government had not yet reached the point where it was satisfied with development plans of the former US Navy Base.

Following Dr. Brown's comment, developers complained they were in limbo, awaiting the outcome of a land transfer proposed nearly two years ago.

Mr. Dunkley yesterday called for the Premier to be more clear about his concerns with the developers' plans.

"We are very concerned with the recent comment by the Premier that the Government has not approved a Morgan's Point development plan because it contains 'too much concrete'," he said.

"It appears the developers, who were originally given an SDO by Government for Southlands and then encouraged to shift their project from Southlands to Morgan's Point after a public outcry, are being sidelined, particularly in light of the Premier's comments that his Government was now 'looking at other opportunities'.

"The only thing that is clear from these statements by the Premier is how unclear they are.

"And so we call on the Premier to clear the air and explain his Government's thinking more fully."

In 2008 there was much public outcry when owners of Southlands, a 32-acre property in Warwick, announced they planned to build a five star resort on their land.

Many campaigned to save the land one of the Island's largest remaining unspoilt plots. The Government stepped in and proposed a swap for 80 acres at Morgan's Point.

However, nothing has been signed so far.

Dr. Brown said last week: "The deal was contingent on Government being satisfied with the development plans. We have not reached that point and therefore the swap has not been finalised.

"It is not a limbo. The prospective developers have not come forward with a plan that satisfies Government."

When asked what issues Government had with the current plans Dr. Brown added "too much concrete".

And he said Government were now "looking at other opportunities" but did not elaborate.

Yesterday, Sen. Dunkley said he believed the developers deserved "better treatment" and a clearer explanation after investing millions into plans for a luxury hotel.

And he added that the Premier could be sending the wrong signal to potential investors by not further explaining the Cabinet's views.

"Potential investment will flee at the first sign of controversy or back room deals that cannot stand the sunshine of public scrutiny," he said.

The Premier's press secretary yesterday said he would not provide a comment.