New legislation for the redevelopment of the Castle Harbour hotel looks set to give the green light for the rest of the project to gather speed.

The order for a concessions package for the property is expected to be debated by the Senate tomorrow and once it becomes law, it will pave the way for more elements of the deal to come on line.

Peter Parker, of operators Bermuda Properties Limited, said several things could now happen at the site -- none of which could have been realised without the order.

The order gives relief on duty, land tax, hotel occupancy tax, payroll tax and alcohol tax.

It paves the way for a 108 suite hotel, spa and golf course, which is set to be operated by Texas-based Rosewood Hotels.

Mr. Parker hailed the passage through the House of Assembly as "a step in the right direction''.

"Several things have to happen before we can get financing in place. This is one of the most important things,'' he said.

"We have got to get planning permission, design work done and we have got to get equity financing in place -- none of these things could happen without the concession order.

"Is it the last step? Absolutely not. We are moving in the right direction.'' Bermuda Properties have already spent between $8 and $9 million on the site.

Most of it has gone on upgrading the golf course but they have also spent substantial sums on investigations on the interior of the property, when renovation looked a possibility.

Mr. Parker said work had been ongoing on all aspects of the scheme, adding that they would be looking at finance sources in the interim period, as well as for the long term.

And he had some words of reassurance to people who may be concerned that the Government will be giving away millions of dollars in tax breaks with their generic Hotels Concession Act.

He said the concessions on tax and customs duty for new developments is an increase in revenue -- because the developments themselves would never have come if the legislation hadn't been passed.

"If they didn't do that there would be no hotels, if there were no hotels there would be no collecting of tax or duty,'' he said.

Mr. Parker said the legislation was bringing Bermuda in line with other jurisdictions, which offered developers much to attract new investment to their shores.

"We are competing with these people, not just for tourists but for development money,'' he added.