The $376 million deal to revamp the landmark Fairmont Southampton hotel has been done, David Burt, the Premier, said.

In a head-to-head debate last night with Progressive Labour Party leadership rival Curtis Dickinson, the Premier revealed an agreement had been signed.

The comments came after Mr Burt signalled on October 7 that a deal was imminent on the project after repeated delays.

During the PLP leadership debate, Mr Burt said: “The deal has been done. The deal has been signed.

“What we are doing is getting to the closing process, which takes 45 to 60 days.

“It was very difficult due to market conditions. They have had to put more money into the deal. But that deal has closed and it is ready to go.”

The level of government sweeteners for the revamp agreement with developers Gencom was the reason Mr Dickinson quit the Cabinet only days before the February Budget.

Mr Burt insisted earlier this month that there had been no change to the Government’s guarantee for the deal.

The incentives came after the Premier took over the finance brief from Mr Dickinson and moved tax concessions through Parliament to the hotel complex developers of between $121 million and $133 million over 15 years.

The action, strongly attacked by Mr Dickinson, also included the Government giving a guarantee of $75 million, representing 21 per cent of the revised costs of the project of $376 million.

Mr Dickinson said at the time that the legislation had failed to provide sufficient detail when, with the $75 million guarantee thrown in, it could run up to $180 million.

He added that the cost could run still higher, with a potential for further incremental costs on the project.

Mr Dickinson said there was a risk that other developers such as St Regis could approach the Government for retroactive relief because of the Fairmont deal, and said the Government was "flying blind" on the real costs.

He said: "Given the Government's fiscal position, the proposed legislation is too generous.“