Finance Minister Eugene Cox defended Bermuda last night on a United States cable television programme on tax havens which claimed the new wave of companies incorporating here is threatening the Island's reputation.

CNBC featured Bermuda in its `Treasure Islands' series, which is examining the controversy surrounding the huge tax benefits US companies can get by locating offshore.

The programme stated that Bermuda has a long history of attracting legitimate businesses with tough money laundering legislation.

But it said recent high profile bankruptcies and the financial problems of a new wave of US firms incorporated here such as Global Crossing "threaten Bermuda's reputation".

Introducing the programme last night, a CNBC anchor described Bermuda as a "great vacation spot but it also has a lot of advantages for US companies", and added "a simple change of address can be worth millions" for American companies.

The five minute programme said the US Inland Revenue Service estimates $70 billion is lost in taxes each year because of American companies registering in offshore jurisdictions.

CNBC said Global Crossing has just four employees in Bermuda, Ingersoll-Rand is predicting tax savings of $40 million as a result of moving to the Island, and Stanley Works is hoping to save $30 million if a planned move here is approved next month.

The programme featured Texas Congressman Lloyd Doggett, who is highly critical of offshore jurisdictions, which he said cost the US Treasury billions each year.

He said if companies wanted to come to an island purely to "dodge the tax collector", it was "an abusive tax move".

The CNBC reporter combed the streets of Hamilton and asked - without success - a series of bemused Bermudians and residents if they had any idea where he could find the offices of a number of US companies that have their headquarters "at least on paper" in the capital.

Mr. Cox stated: "You can avoid tax, but that's not a crime. It's when you evade tax that you get into technicalities where you're committing an offence.

"People that come here are not doing anything illegal. They are looking for the professionalism they find here and the infrastructure."

Bermuda Monetary Authority chair Cheryl Lister told the programme: "Bermuda wants legitimate business and legitimate business only. We are not interested in people who want to break the law in their own country."

The next in the `Treasure Island' series features the Bahamas. The CNBC trailer for the programme asked: "What's in it for the tax havens? Plenty."