Government inexperience contributed to the "body blow'' dealt by the collapse of the multi-million dollar Morgan's Harbour scheme, former Government ministers have claimed.

Opposition United Bermuda Party members yesterday lashed out at the Progressive Labour Party over the loss of the $300 million development at the former US Naval annex in Southampton -- a deal which they say was almost handed to the new administration on a plate.

But Tourism Minister David Allen hit back last night, saying his Government would be creating more new hotel and property developments than the UBP had done in 27 years.

And Mr. Allen said the Morgan's Harbour scheme collapse came after the developers had "failed to come to the wicket''.

Shadow Tourism Minister David Dodwell said the loss of the mixed resort and community scheme could have far-reaching long term effects on Bermuda and its ability to attract investors.

"Prior to November 9, whilst the deal was not complete, it was at an advanced stage where it would have been cemented,'' said Mr. Dodwell. "What happened? "It shows a lack of experience of the new Government and they have showed a lack of confidence in their ability to finish the process.

"That investment would have sent a strong message to other investors that Bermuda was coming back.'' He was speaking after an announcement last week that the Government had broken off negotiations with Morgan's Harbour Investment Limited, after the company had failed to meet some of the conditions set out.

Development and Opportunity Minister Terry Lister said the Government and the Bermuda Land Development Company had worked hard to make a deal, but said MHIL and backers the West Group failed to sign a formal agreement.

MHIL have spent $3.5 million on preparation work and have not totally given up on the project, believing there may still be a chance to seal a deal.

Shadow Finance Minister Grant Gibbons said the news was a "body blow'' for the Island, and could have lost hundreds of jobs and business opportunities for local companies.

"This would have been the first world-class resort developed here for quite a few years,'' he said. "The collapse of this is now going to make it much more difficult to find others prepared to come and most important, to provide financing.'' UBP blasts Goverment over collapse of Morgan's Harbour Dr. Gibbons called on Terry Lister to "come clean'' over exactly why the negotiations were broken off, which he said were put on hold whilst the November election took place.

"It is my understanding that the Government simply didn't make it happen. We should have a clear understanding why such an important project literally disintegrated.'' And both former Ministers hit out at the PLP Cabinet for the timing of the announcement, just hours before the annual Cup Match holiday weekend began.

"How could they do something like that and then disappear not to answer questions?'' said Mr. Dodwell. "I am extremely disappointed that key Ministers were not available after such a major announcement.'' Mr. Allen, while saying the negotiations were handled by Mr. Lister, said the Morgan's Harbour development would have been a mostly residential project, but wanted to assure the public Government had "other options to pursue''.

"Government had waited a long time for the original developers to come to the wicket,'' he said. "But it came to a point Government had to make a decision.

"Their (UBP) Government had been in power for more than 30 years and for 27 years Bermuda saw no new developments,'' Mr. Allen continued. "I find it rather strange they continue to harp on the last few months.'' Mr. Allen said contacts with potential developers were proving fruitful and predicted that within the next two to three years, the Island would see three times more development than the past three decades.

He called announcements last year on hotel and guest property developments by the UBP "grandstanding'' and said the developers would always have difficulty raising enough "venture capital'' to fund the projects.

The PLP Government, however was trying to "create a climate conducive for development'' to encourage investment in the hotel industry.

Mr. Allen concluded: "I don't want the public to think those kind of misleading comments of the Shadow Ministers are the facts. They are creating a distorted picture to serve their ends.'' "We are simply getting on with the job,'' he said. "These developers are expressing great support for what the PLP Government is doing.''