It hasn't been all smooth sailing for Polython, the German film company making a television movie on the Island.

Caroline Troncossi, who was contracted to find locals to serve as extras on the set, has initiated legal action against Frank Buchs, a Polython representative, because the company balked at paying her the agreed fees.

Ms Troncossi's efforts led to her discover the company - which had been invited to shoot on the Island by the Department of Tourism - was not registered with the Department of Immigration, had no local agent and had not secured work permits for its personnel.

Mr. Buchs and Ms Troncossi later settled her claims out of court. However, Ms Troncossi says Government appeared to be bending over backward for the company in the face of promised exposure for Bermuda.

"The problem is why is this German company allowed to come here, pay no taxes, have no work permits and make a pile of money? " she asked. "If I do that I get in trouble and I'm a Bermudian. Why are they allowed to?"

Polython has wrapped up their shoot and is leaving the Island this week.

The Department of Tourism told The Royal Gazette via a faxed statement that Polython had shot a programme called "Dreamboat" when they first came to the Island in May.

"It has been hugely successful in the past... The audience for the programme is 12 million viewers in Germany alone. The programme is also broadcast on Swiss and Austrian TV." "Dreamboat" is expected to broadcast on Christmas Day.

The Polython shoot just ended is a love story with scenes shot at Elbow Beach Hotel, a yacht in Mangrove Bay and several other areas around the Island.

Ms Troncossi said that, as a business, the company's top priority was to make money and that the Tourism department was helping it to exploit the Island's resources and people based on the "random hope that the film was going to help advertise Bermuda.

"I just think they are trying to use Bermuda to make their millions and, yes, Bermuda may get advertising but then maybe it won't. It's just a random hope."

Ms Troncossi said her impression was that the film's producers expected free - or cheap - local labour and had done little research on Bermuda's work environment.

When contacted by The Royal Gazette, Permanent Secretary for Immigration Robert Horton was initially not aware of the company's presence or activities on the Island. He later called to confirm that the filmmakers did not fall under work permit controls because they were working for an overseas company.

"I am able to confirm the company has been in Bermuda for some weeks," said Mr. Horton. "They came here through the Department of Tourism. But the work they are doing in Bermuda is outside work permit controls because they are doing work for an overseas company, a German T.V. station, and there won't be any sale or distribution of their work in this country."

That leaves open the question of how the Bermuda Government protects its citizens from being abused by such companies doing work on the Island.

"Once an organisation or group comes in under the auspices of Tourism they certainly are free to engage the services of Bermudians. But it would be a contractual relationship between employer and employee," said Mr. Horton.

Ms Troncossi's attempt to sue in a local court floundered when Magistrate Edward King said she should be suing the company and not Mr. Buchs.

Mr. King advised Ms Troncossi to contact the company's local representative. Because Polyphon was not subject to Immigration's work permit controls it didn't have a local representative.

Had she not arrived at an out-of-court settlement, Ms Troncossi would have found her search for justice almost impossible or at the very least highly impractical.

Mr. Horton promised to make enquiries. Jean Flath, owner of Hyper Productions, which provides services for production companies and worked with Polython during the May shoot had a ready answer.

"There should be a film commission," she said. "If there was a film commission there would be a mechanism to protect Bermudians from being taken advantage of by an outside entity." She said a film commission would also be able to provide a support infrastructure for filmmakers not familiar with the Island.