Business bosses yesterday blasted Premier Jennifer Smith over "inflammatory'' and "threatening'' comments in a letter complaining about white-collar resistance to the January 4 holiday declared to celebrate the PLP election victory.

And the row could signal the first cracks in the relationship between the new Government -- which pledged to consult closely with business -- and the Island's biggest money earners.

Ms Smith's letter to Chamber of Commerce president Michael Smith, in response to one from him outlining business concerns over the holiday, said Government was "guided by the greater will of the people''.

And Ms Smith added that "any segment of the community not joining them does so at its own peril''.

Mr. Smith said: "I would say it's more than vague -- but it could mean many things, from people being upset that they're unable to take part in the holiday through to the Government possibly taking action against companies.'' He added: "I'm disappointed at the entire tone of the letter -- I believe the letter we wrote to the Premier has been largely misinterpreted.'' And he said: "I'm not going to comment any further on what it might or might not mean.

"I don't want to do any further damage on this issue -- enough damage has been done already.'' But Shadow Finance Minister Grant Gibbons -- who warned the House of Assembly that the cost of the holiday could run as high as $10 million -- fired off a broadside.

He said: "It would appear that the honeymoon is now over.'' And he added: "This letter will do nothing to build business confidence in a PLP Government.'' Privately, businessmen both local and international said they were shocked at the tone of the letter.

One senior banker -- furious at the cost and disruption, especially as the new Euro-currency is being launched on January 4 -- fumed: "It's ridiculous.'' And he predicted: "We'd be the laughing stock of the world if we took this holiday.'' Another businessman said: "If I were an exempt company, `at my own peril' might mean a veiled threat with regard to work permits.

"It could mean so many things -- but none of them are very nice.'' And he predicted: "This kind of inflammatory language in a letter delivered to the media won't serve Bermuda in the long run.'' Chamber of Commerce International Companies Division chairman David Ezekiel was yesterday playing it cool and declined to comment on the letter.

But he said: "We would have certainly liked some consultation -- but the fact of the matter is that the Premier believes that this was the best day and we're going to have to work around it.'' Premier comes under attack But one international business figure said: "The use of the word `peril' is rather threatening.

"And I'm thinking of other areas in the future if people don't do as they're told -- it's a very reactionary reaction.'' He added disgraced former Philippines President, the late Ferdinand Marcos, was fond of declaring extra holidays -- until a furious business community said it had to stop.

Ms Smith could not be contacted for explanation of what exactly she meant by the phrase last night.

Mr. Smith at first backed the holiday -- but fired off a letter of complaint after being deluged with calls from angry Chamber members.

Concerns included firms needing staff to deal with the financial markets on the first day of the new Euro, the loss of an important trading day for local shop sales and accountants losing a day at a critical year-end period.

Premier Jennifer Smith `. . . we as the Government of Bermuda are guided by the greater will of the people, who spoke so loudly on 9th November 1998, that any segment of the community not joining them does so at its own peril.'