Government is to spend half a million dollars on setting up a base in London to help lobbyists defend Bermuda?s reputation.

Finance Minister Paula Cox said the money would likely be spent on renting a place, possibly linking up with the tourist office.

Bermuda had been left behind in the lobbying stakes and need to be more nimble footed, said Ms Cox.

She told ?People are really resentful of our success in the insurance and reinsurance sector and I think we are set in the sights of people so we have to make sure we have a competitive representation and have people on the ground to represent our interests.?

Earlier she had told the House that all of the British Overseas Territories with the exception of Bermuda and small Islands such as Pitcairn, Tristan Da Cunha and St. Helena, have had London offices for years.

?This has strengthened their relations with the UK Parliament and business leaders and also provides a focal point for students studying in the United Kingdom.

?In addition, the representatives of the Overseas Territories in London form the basis of the United Kingdom Overseas Territories Association which provides opportunities for all of the OTs to cooperate in matters of mutual interest.

?As Government further considers how to better position Bermuda and to advance her national interests, the establishment of a physical presence in London is a logical and necessary step.?

Government also announced it would beef up its presence in Washington DC.

Ms Cox said: ?We have to ensure we have a voice and that we have every opportunity to protect and promote Bermuda?s national interest.

?There can be very negative economic, social, political and environmental consequences for those countries that do not represent their own national interests at international gatherings.

?Governments have a responsibility to attend to the welfare and well being of their citizens on all fronts at all times. Never before has this imperative been more clearly defined than in these times.

?Accordingly, the National Budget for 2006/07 provides resources for the Government of Bermuda to establish a physical presence in London and to strengthen and to diversify its presence in Washington D.C.

?During the past year, Government has extended its network of contacts in Washington D.C., London and Switzerland.

?These contacts and relationships remain key to Bermuda?s long term interests and the work in this area will be raised to a higher level in 2006/07.?

Opposition Finance spokesperson Patricia Gordon-Pamplin said: ?It seems to me like they want to set up embassies before they get independence.?

Responding to that Ms Cox said: ?People may see it like that and characterise it like that but I don?t think so really.

?I don?t see it as a precursor but I don?t think it hurts when you are looking at it down the road.?