development.

Tourism Minister David Allen and Home Affairs Minister Paula Cox called a joint press conference to counter what they claimed were "erroneous'' statements and "misapprehensions'' about the plans.

And Ms Cox slammed the Canadian investors behind the multi-million dollar mixed villa, hotel and golf course scheme for not answering their correspondence on queries the Government had.

Minister Cox said: "When we ask questions they should have the courtesy to respond, rather than using a stool pigeon to go to the Press with clear lies -- it is not acceptable.'' They also revealed that Elbow Beach had withdrawn from being a hotel and marketing partner of the project.

Mr. Allen confirmed that the backers needed to find a new hotel partner before they would be allowed to go any further with the plans.

But he said there was no conflict in the Government with the idea of leasing back a number of weeks a year in the villas to Island vacationers.

"We have found a way with the existing legislation so this can be done,'' he said. "This doesn't detract from the need to update the Hotel Licensing Act to take into account this type of accommodation.'' And Ms Cox added that the idea, which is new to Bermuda, fell under Immigration Department legislation which was being used until new law comes before MPs.

Their joint statement added:"The land policy allows the Government to consider such a request where the construction of residential units is an integral part of a hotel redevelopment.

"Government has been considering the request, but in the meantime Elbow Beach has withdrawn from its proposed marketing and hotel management relationship with the Belmont project.

"We are not against the leaseback concept, as implied by The Royal Gazette article.

"On the contrary, not only is it enshrined in the land policy, but we are also insisting that leaseback should take place so that those residential units are part of the tourist accommodation mix.'' The Royal Gazette left messages for the Ministers on Tuesday in a bid to have the situation explained, but both denied yesterday that they had received them.

A message was also left for Labour and Home Affairs Permanent Secretary John Drinkwater, but was not returned. It is understood that a telephone communication to Ms Cox's department was never passed to the Minister.

Mr. Allen said the entire Cabinet was committed to revitalising tourism, but they were concerned at some of the negative stories finding their way overseas.

He also accused Shadow Tourism Minister David Dodwell of having the gall to criticise the Progressive Labour Party's progress so far, when the United Bermuda Party had not had a new major hotel in 26 years.

Ms Cox said their Ministries enjoyed a spirit of cooperation to help new developers, and there was even a fast-track procedure for assisting backers through the red tape.