Shadow Finance Minister Bob Richards last night described US President Barack Obama's tax haven crackdown as "a direct threat to Bermuda's economy".

The United Bermuda Party MP also accused Finance Minister Paula Cox of "sluggishness" in enacting tax information exchange agreements (TIEAs) that had caused the Island to be "grey listed" by the Organisation for Economic Development and Cooperation (OECD).

And he added that the Island needed to step up its lobbying and publicity efforts to differentiate itself as an international financial jurisdiction.

"The announcement that US President Barack Obama intends to crack down on tax advantages enjoyed by offshore companies constitutes a direct threat to Bermuda's economy," Mr. Richards said.

"Details on the specifics of the President's plan remain sketchy, but we must register our concern that the Finance Minister's performance in dealing with this kind of challenge has been unsatisfactory.

"Her sluggishness to enact tax information exchange agreements (TIEAs) with other jurisdictions saw Bermuda 'grey listed' by the OECD. This was an inexcusable result considering that the Bermuda Government was committed to implementing the agreements but then failed to do so in a timely manner.

"It is said that Bermuda's competitive advantage is that we have the agility of a speedboat versus the US having the power of a supertanker. But the Minister's performance on handling unfolding tax developments lead one to believe that Bermuda has the power of a speedboat with the agility of a supertanker."

Mr. Richards said it was Governmnet's "failure to act expeditiously, this complacency" that concerned the UBP most about the developing challenge in Washington.

"The Finance Minister's stream of platitudes about Bermuda being, 'The leader in tax information exchange', is no substitute for the hard work and timeliness necessary to meet our international commitments and to differentiate Bermuda as an international financial jurisdiction," Mr. Richards said.

"Minimising the potential impact of the President's initiative will require a determined and concerted effort that Bermuda has not yet shown.

"We need a targeted public relations campaign in conjunction with, and in addition to, the efforts of the Association of Bermuda Insurers and Reinsurers (ABIR), the Association of Bermuda International Business (ABIC) and the Bermuda International Business Association (BIBA).

"The government's efforts to date have lacked the strategic commitment to successfully register Bermuda's story with the many levels of the US government.

"The Minister needs to explain her plans to the people of Bermuda."