Government has been slammed for inactivity on a major tourism investment after it dropped the first developers more than a year ago because it did not want the plan "to remain in limbo''.

Last July, Development and Opportunity Minister Terry Lister pulled the plug on a $300 million plan to turn the former US Naval Annex in Southampton into a multi-concept leisure and tourism facility, but little has happened since.

At the time, the Minister said the company behind the plan, Morgan's Harbour Investment Limited (MHIL), had failed to sign a formal agreement and he had decided to drop them to prevent the deal stagnating.

Shortly after he handed a 90-day exclusivity agreement to BEAM, backed by BCM McAlpine to give them the opportunity to come up with a plan -- but close to a year later the scheme appears no nearer realisation.

Last night Shadow Development and Opportunity Minister Allan Marshall hit out at the lack of apparent activity and shortage of information on what the plans are.

He said the situation could have had a far-reaching affect on Bermuda's image overseas with other potential investors, who are concerned at the processes on the Island.

"Investors are very, very concerned about dealing down in Bermuda because of the shabby way Morgan's Harbour was dismissed,'' he said.

"The group behind Morgan's Harbour was very close to making this thing happen, something happened to take them off the project, but the buck should stop with the Minister.

"I think BEAM have been given time to make it happen. It is very important to communicate where this leaves everybody. I think it is a travesty that this particular site has not had ground broken, it speaks a lot about the redevelopment of our tourism product.'' Alan Burland of BCM McAlpine refused to speak to The Royal Gazette and referred all questions to Mr. Lister. Mr. Lister was not available last night.

MHIL planned to build homes, a hotel, golf course and other resort facilities on the site.

BEAM's scheme was scaled down but included a golf course due to be opened in 2002.

Mr. Marshall said MHIL were near finalising the deal last year but he alleged that "ministerial meddling'' had ruined any chance of it going ahead.

TOURISM TOU