assurances on their plans.

The Canadian investors behind the mixed golf, hotel, villa and restaurant scheme are keen to find out exactly how the revamped timeshare legislation will look before they go any further.

A sticking point is understood to be the permitting of foreigners to buy the properties and lease back a certain number of weeks a year for vacationers.

But the deal is still on the cards and officials connected to the investment group say they are keen to come to Bermuda, but are seeking assurances on what they will be allowed to do.

Belmont general manager Gordon Slatford said: "At this point there are still certain difficulties with approval from Immigration relating to sale and leases of properties. Nobody is going away, but it is important investors feel comfortable they have all their permission before they are prepared to purchase.'' Up to 50 villas are to be built on the Warwick site, and it is understood that the Government does not have an issue with sale to overseas investors, but does with the letting back to holidaymakers.

The buyers would want assurances that they could occupy the properties for a proportion of the year, but have the security that the remaining weeks could be sold for a profit to visitors.

And with recent bad publicity over Government conflict over hotel developments and work permits, investors are looking for promises over the legislation.

The 1981 Timeshare Act is currently under review by the Attorney General's Chambers.

Belmont backers seek assurances and it is expected to come before MPs later this year.

And with many other developments pending, including possible property leasebacks, Tourism officials see its rapid turnaround as vital if potential backers are to choose Bermuda.

Mixed-use plans are becoming increasingly common, with investors wanting to offset tourist accommodation costs by building residences which can then be sold and possibly let back to vacationers.

Permission has been granted for the demolition of the former Belmont Hotel, which closed late last year.

A call to Home Affairs Minister Paula Cox was not returned last night.

Shadow Tourism Minister David Dodwell said he would be astounded, if it was true that there was a question over the leaseback of properties, as that would be a 180 degree reverse on the position that the UBP had taken last year.

"It is important that the Government clarifies this immediately,'' he said.

"Surely the Government wouldn't go back on this.'' The former Minister said the UBP had commissioned a study on tourism, which stated mixed developments were the way to go. He added the Belmont project was based upon the concept and could easily fail if the Government backtracked on the issue.

Assurances: Gordon Slatford