A Government ferry pilot accused of steering onto a dangerous course walked free from court yesterday -- because of a legal loophole.

Magistrate Arthur Hodgson discharged a negligence case against 41-year-old James Spence, claiming prosecutors had not proved he was piloting the Sea Venture at the time of a near disaster.

Spence, of Cove Valley Road, St. George's, had been charged with endangering the life of national sailing coach Charles (Chuck) Millican, who was refereeing laser class sail boat races in the Great Sound.

The court heard Spence steered the ferry out of Dockyard and around a channel marker -- but then bore down on Mr. Millican in his 18-foot hard-bottom inflatable boat.

Mr. Millican said his boat's anchor was cut by the ferry's propeller and the boat passed so close that passengers on board "were shocked''.

He added that his own dingy was dragged up to 100 yards for 30 seconds during the drama on June 24 last year.

Spence, who denied the charge, did not speak in his defence. And he was cleared despite telling Police he had "seen the rubber ducky'' en route back to Hamilton across the Sound.

His lawyer, Marc Telemaque, successfully argued there was no case to answer.

The official charge against Spence stated that he was a "licensed pilot'' on board the Sea Venture.

But Mr. Telemaque claimed there was no proof that Spence was a licensed pilot, or that he had been driving the Sea Venture .

He said: "There is no evidence that he is a licensed pilot. There is no evidence he was steering the Sea Venture .

"There is no evidence that it was for the purpose of properly piloting her that he was negligent or did any act at all to endanger the life or limb of Charles Millican.'' His submission centred around evidence by P.c. Paul Watson, of the Marine Police, and whether or not the officer had proved Spence was the pilot.

P.c. Watson, who later led court officials to the Great Sound for a site visit, said he received a complaint from Mr. Millican at 6.50 p.m., went to the Marine and Ports offices and boarded the Sea Venture .

"I spoke to the person I now know to be the defendant, Mr. James Spence, who I ascertained was the pilot of the boat,'' he added. "I informed Mr. Spence that a complaint had been received regarding the operation of the ferry boat.

"Mr. Spence replied: `I saw the rubber ducky when I went across the sound. I thought he was drifting. He was waving and the passengers up front waved back.

I'm really sorry'.

"I then informed Mr. Spence that he may have committed an offence of operating a powercraft without due care and attention, or dangerous powercraft operation.

"I then cautioned Mr. Spence. I then informed Mr. Spence that a report would be submitted to the Director of Marine and Ports regarding the incident.'' P.c. Watson said he cautioned Spence again on July 22 at the Albouy's Point Ferry Terminal, for committing a negligent act, but the suspect made no reply.

And Mr. Telemaque claimed his original conversation with the officer could not constitute a confession.

The lawyer added: "We cannot know in what context that `I'm sorry' was said.

It would be dangerous to convict.'' Mr. Millican, questioned by prosecutor Larry Mussenden, told the court he ran about 400 similar races each year.

He said the ferry's propeller cut his anchor rope after the boats passed within about 30 feet of each other. And he claimed the pilot had not even seen him.

"The ferry was aiming virtually at me for the initial part of the turn,'' he said. "Then at roughly 200 metres I became nervous and began to wave both hands for his attention.

"The boat veered to pass my bow within about one or two boat lengths. The passengers were in shock. You could see them. I was close enough.'' Dismissing the case, Mr. Hodgson said: "I believe that a properly instructed jury could infer from the events described by Mr. Millican that the pilot of the Sea Venture was negligent.

"But there is no direct evidence which links the defendant to the pilot of the Government ferry.

"The only way in which he could be linked is by his own response to the Police officer, when interviewed.

"As such, I must give the benefit of the doubt to the accused and the defendant is dismissed.''