Premier Jennifer Smith was ill-prepared to face media questions on a threatened US law designed to close a `tax loophole' which American insurance giants claim gives Bermuda companies an unfair edge, Deputy Opposition Leader Grant Gibbons said yesterday.

He slammed the ruling Progressive Labour Party for favouring overseas venues for making major statements after keeping Bermudians in the dark for months.

Dr. Gibbons was speaking after Ms Smith went on the offensive at the annual Risk and Insurance Management Society conference in San Francisco.

Legislation is currently going through the US Congress after four American insurance companies, including Chubb and Hartford, said Bermuda's ACE Ltd. and XL Capital are acting illegally by reinsuring their own business and are avoiding paying US income tax on business done in America.

The two Bermuda-based firms hit back that they were doing nothing illegal and the US move was branded "protectionism'' by XL.

Ms Smith said the US bill unfairly picked on Bermuda and was a bid to "influence the tax considerations of another country''.

She added that Government had been working with business for months to find a way to halt the bill, which could become US law by the end of the year.

Dr. Gibbons said: "The first thing I find ironic is that the only time the Bermuda public gets a sense of what's happening is when Government holds a press conference overseas.

"I don't think Government has released a text of what the Premier said so the public has to rely on what The Royal Gazette said.'' He added: "Our sense is that the comments Ms Smith made were insubstantial and she appeared ill-prepared. Clearly the questions should have been anticipated.'' And Dr. Gibbons said: "The comments she made did not seem to be as diplomatic as the United Bermuda Party would have made in similar circumstances.

"The Government seems to be developing an `angry row' philosophy when it comes to negotiation and diplomacy.'' Dr. Gibbons said he was glad to hear that Government was working to beat the bill.

He said: "I'm pleased that lobbying is taking place, but I would hope it's being conducted by those who are knowledgeable and well briefed and that it's targeted at decision-makers in Congress and the members of the appropriate committees, probably the Ways and Means Committee.'' GOVERNMENT GVT BUSINESS BUC