Castle Harbour hotel.

Developers Bermuda Properties will get concessions on payroll tax, land tax and alcohol duty in return for training Bermudians and providing Bermudian entertainment.

Government Senator Calvin Smith said of The Hotels Concession (Castle Harbour Redevelopment) Order 2000: "This is a giant step forward by the Government to take steps to turn round tourism.'' He said the hotel, due to be finished by June 2003, would feature a spa and health club as well as 108 suites and an upgraded golf course.

Independent Sen. Walwyn Hughes questioned how the concessions would work and wondered whether the 70 percent relief on drink duty was too great a concession in return for providing local entertainment. He said: "It looks like a lot of money to be spent on a single item of hotel management.'' He said: "This is no ordinary order.'' And he chided Sen. Calvin Smith's brief preamble prior to putting the bill before the Senate.

Sen. Hughes said: "I was surprised it was introduced rather casually. This bill has a lot of financial implications.'' United Bermuda Party Senate leader Maxwell Burgess said Bermudians had a right to know what the country could expect in return for the concessions.

He said the developers would have an idea of projected profits and the Bermudian people were being shoved and bullied into a deal without knowing the facts.

Sen. Calvin Smith hit back at the criticism and he reminded Mr. Burgess of his accusation that Tourism Minister David Allen couldn't get a deal.

Sen. Smith said: "We have cut a deal.

"We have delivered on what you are complaining about and now you are complaining about the fact that we have delivered.'' Sen. Burgess said the Bermudian public had a right to know when the deal would actually be signed. Progressive Labour Party Sen. Michael Scott pointed out that the Order was not a contract.

He said: "I am amazed a senior senator should ask for these things.'' The Opposition Senator queried how the developers could be applying to do the building under an act which had yet to be passed. Sen. Burgess alleged that hotel managers Rosewood who are in line to run the hotel had been named on the Order but then dropped.

Sen. David Burch challenged Sen. Burgess to prove this. And he explained if the running of the hotel changed hands then Parliament would not have to come back and amend the order.

He said the imminent deal had created a buzz in the industry which hadn't been seen for 20 years. Sen. Burch said if tourism ministers under the UBP watch had done such deals the industry would not be in the state it's in now.