Government has hit back at a developer who criticised it for delays in making a decision over who will take over the empty Club Med hotel site in St. George's.

Works and Engineering Minister Alex Scott, who has responsibility for the site, and Director of Tourism Judith Hall Bean denied claims by Stepping Rock Developments that an end of October deadline had been set for a decision.

Steve Hostettler of Stepping Rock warned last week that his company, which wants to build a new hotel and retreat for injured athletes on the site, will walk away unless a decision is made soon.

Mr. Scott told The Royal Gazette yesterday Government would not bow to threats and said no deadline had been set.

But he would not be drawn on when the special Cabinet committee on hotel development, which is looking at a shortlist of proposals, will make a decision.

Mr. Scott said: "I was taken aback by the developer going to the media, not that I mind that, and the strength of his criticism, and I asked who they had spoken with at Tourism who had given such an undertaking.

"It appears there is a suggestion the Director of Tourism gave a verbal commitment, but I would be surprised if she had. I certainly hadn't.

"It seems he went off in a fit of pique. We have other proposals, so Bermuda is not going to lose out.

"If he withdraws his interest we are sorry he has taken himself out of the running, but it leaves us to consider others. We've several worthy possibilities that are before the committee.

"I think someone feels they can pressurise the process by making these allegations but they will just be harming themselves."

Mr. Scott added that detailed plans had not been submitted for the Club Med site and he did not understand how Stepping Rock could say they had spent a lot of money on preparations.

He said one reason for the delay in making a decision was the illness then death of former Tourism Minister David Allen, who chaired the special hotel development committee looking at Club Med.

Other developers who submitted proposals were aware of Mr. Allen's situation, he added.

Ms Hall Bean said yesterday: "I don't know who gave them an October deadline. We didn't.

"We are presently looking at all seven applicants. This particular group put in a letter of intent on August 21 and they were told all along we have a number of applicants and we have to do due diligence and make a decision."

Mr. Hostettler could not be contacted for comment yesterday.