Government a huge confidence boost.

The consortium, which also involves Bermudian backers, have distanced themselves from what appeared to be discord over the project last week and have signalled the green light for the plans.

Speaking from Canada, a source close to the group who wished to remain anonymous, said they had ironed out any issues with the Government and were moving ahead with a new spirit of cooperation.

And he confirmed that a new hotel partner would definitely be lined up for the scheme, adding the selection of a high quality name could take some time.

"Right now we are very upbeat, we have spoken to the Ministers and everyone has one objective to make this come about,'' he said.

"We are taking little steps but we are continuing in the right direction -- we have got tremendous support from the Government. It couldn't be better right now.

"And there will be a hotel partner, that has never been the issue.'' The news comes after Tourism Minister David Allen and Home Affairs Minister Paula Cox called a joint Press conference to dispel any concerns over Government's position on Belmont.

Both said there was no issue over the leasing back of villas to be built on the site to vacationers, but Mr. Allen said a hotel partner would have to be found before the plans could go further.

The decision for Elbow Beach to withdraw from its potential role as partner was a joint one, according to the source, and came after uncertainties over Elbow's commitment to the idea.

But he stressed they wouldn't allow the search for a new partner to become a sticking point between them and the Government.

"We have to have a hotel partner but it is picking the right one,'' he said.

"We had a partner up until one and a half months ago, we want someone with the same high standards. That may take a little time, we don't want to jeopardise the whole project moving forward because of that.

"But if that is what is required, we will try to get something that works for everyone.'' The consortium, which has much previous experience in hotel projects, is hoping to start demolition of the former Belmont hotel in the autumn, once the purchase from owners Forte has been finalised.

Work on the new golf course would follow in the spring, with the rest of the villa, hotel and restaurant developments coming on line in the future.

The Canadian insider said all involved with the project were pleased that the issue of leasing the villas to holidaymakers had been sorted out.

He added that a remark by Ms Cox over a perceived failure to reply to Government questions on the project, had been a simple mistake after a letter had not been sent from Bermuda to the correct address.

The chances of the Camberley Hotel Company coming to Bermuda have disappeared.

The Atlanta-based organisation is just in the process of buying a 350 acre Florida resort and a Chicago hotel, deleting the Island from its plans.

Belmont development back on track A spokesman for the company said there had been no further talks with Government over taking on the former Club Med property in St. George's.

Camberley had optimistically posted Bermuda on its adverts in the New York Times and on its website, but the deal fell apart after they asked the Government to consider providing a financial surety for part of the investment.

The Government stated that it was "not in the hotel business'' but stressed that they were still hopeful of attracting a major chain to the location.