Opposition Senator Michael Fahy has accused Government of giving mixed messages on how welcome international business is in Bermuda.

In one instance, he said, Government Senate Leader David Burch was questioning the credentials of XL Capital boss Michael McGavick, and in the next, Finance Minister Paula Cox was describing the industry head as a "key" promoter of Bermuda's cause in Washington.

Sen. Fahy said: "They are sending mixed messages. On one hand we have individuals in this place making remarks about international business and we have the Minister of Finance who praises the same individual."

As explained by the Finance Minister, Mr. McGavick has helped the Association of Bermuda Insurers and Reinsurers persuade lawmakers not to support US taxation changes punitive to the Island's insurance sector.

Sen. Burch denied making remarks. He said: "I just asked a simple question and the fact it has been interpreted into something else – you can't hold me responsible for that."

Sen. Fahy said more double talk had happened since then, with the Finance Minister welcoming a review by the British of Bermuda's financial industry with open arms, while the Premier was saying Bermuda should be offended and insulted by the probe.

Bermuda should be open and transparent, argued Mr. Fahy.

And he wondered why Bermuda had not been present at a meeting in the Caymans between the European Union and overseas territories, where it could have argued it was a clean jurisdiction.

Sen. Burch countered there was a good relationship between international business and Government: "No one needs to tell me of their importance to Bermuda."

But he said the relationship could not be so fragile that someone could not ask questions in the public domain: "It is not Sunday school."

And he said frank discussions with employers groups were a regular event.

He then attacked an editorial in the Mid-Ocean News which he said had been an assault on the international business community.

"I want to go on record and say I totally disagree with most of what (editor Tim Hodgson) said."

Sen. Burch said international business were the job makers, employing hundreds of Bermudians and he accused The Royal Gazette of trying to launch a battle between the Minister of Finance, himself, and the international business community.

This week Finance Minister Paula Cox JP, MP, said of the UK's financial review: "The terms of reference are cast at a very high level and therefore leave much room for flexibility in approach."

Ms Cox said it was understood the reviewer, Michael Foot, will take account of recent reviews by the International Monetary Fund (IMF)to expedite the probe.

"In addition, the Ministry of Finance has been given assurances by HM Treasury that internal fiscal autonomy will be out of scope for the review.

"During these challenging and uncertain financial times, Government understands the importance of maintaining economic stability."

This newspaper asked Bermuda's four banks what they thought of the British review.

Three have failed to respond or given a 'no comment'.

However Bermuda Commercial Bank Chief Operating Officer Horst Finkbeiner said: "Bermuda will have no difficulty with the upcoming review of British 'offshore' financial centres. Bermuda is not a so-called 'offshore haven', and our legal and regulatory environment is excellent. People that imagine (financial) pirate ships in Hamilton Harbour are mistaken.

"We should remember that this is not the first such review."

As examples, he highlighted were:

n The Foreign and Commonwealth Office commissioned KPMG to conduct a similar review in 1999, and in 2000 the report made some recommendations but concluded that Bermuda "has a strong legislative base for international cooperation".

nBermuda received a favourable report in the 2005 IMF review on Bermuda's banking and supervisory regime, with the IMF concluding that "the financial, regulatory, and supervisory framework is well developed in banking, the key areas of securities regulation, and AML/CFT".

n The more recent IMF report in 2008 states that "Bermudian authorities have made impressive progress in developing and implementing a risk-focused approach to supervision across the range of their sectoral supervisory responsibilities".

Mr. Finkbeiner pointed out that with only four licensed banks, Bermuda isn't a banking haven: "Nor is Bermuda a tax haven; our tax regime does not favour anyone, and the Proceeds of Crime Act (POCA) makes criminal tax evasion an indictable crime for money laundering."