Plans for the redevelopment of the former US Naval Annex at Southampton could take a huge step forward next month.

The potential developers of the site, King's Point Ltd., have until March 31 to show Government the progress they have made with the proposed leisure and housing project.

And Development and Opportunity Minister Terry Lister said he would be surprised if the consortium, headed by construction boss Alan Burland, did not have some results to show on that date.

The group had been given a time extension, from their previous deadline last year, to assist them in preparing a feasible plan for the development.

And he is hoping they will be able to produce information or show there is a basis to continue negotiations.

He said if they had not produced the information or had nothing to support it, then he would say "forget it''.

"What I think will happen by the end of the month...we will have enough information to have good reason to continue talks,'' he said.

He said he would "be extremely disappointed'' if there was nothing to progress with by the end of the month.

Plans for the site include golf, housing, ferry dock and shops. It is anticipated that it will be completed in stages, to avoid overheating the economy, and will eventually include a hotel.

Mr. Lister said the developers had been given time to sort out a concession package with the Government, which included indemnity for the potential clean-up costs of the land.

Following that, he said they should be in "good shape'' to go ahead and sign an agreement.

The visit last week of Foreign Office Minister Baroness Scotland, who is responsible for overseas territories, would help efforts to get the US to pay for the environmental clean-up, he said.

He said because the Minister had been out to the land and seen for herself the extent of the work required, it would assist talks between the UK, Bermuda and the US on the restoration scheme.

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