A newsletter for the offshore communities has claimed that the Progressive Labour Party has derailed the Bermuda gravy train, and says the situation on the Island is `eerily similar to that of Bahamas of 30 years ago'.

The publication, which is faxed around the Island and the Caribbean for a subscription fee, is seen as a maverick newsletter and is often opinionated and frank about what it sees is happening in the business community.

The article, headed: "Trouble in paradise: PLP derails the gravy train'' is on the front page of the ten-page Inside Bermuda.

In the article, former Royal Gazette business reporter, David Marchant, who runs the newsletter, states that there are signs that the `relatively new Bermuda government is in the early stages of antagonising international businesses in a scenario that is eerily similar the Bahamas of over 30 years ago.'' The article says that over the past six weeks, the PLP has raised payroll tax from 12 to 12.75 percent, announced plans to restrict the length of many work permits to six years and make employers report the racial composition of their work force and of people interviewed for job vacancies.

The article cites STW's decision to leave the Island and its Chief Executive Officer blaming Government policies for the company's move.

In the same publication is the anonymous letter by the disgruntled Chief Executive Officer published last month in The Royal Gazette .

The magazine also claims that John Deuss has relocated most of his trading operations at TW Securities from Bermuda to Houston Texas `leaving behind a skeleton staff'.

The article continues: "Apart from announcing unpopular policies, Government members and several locals have further incensed foreign businessmen through public outbursts and letters to local newspapers attacking them and making them feel unwelcome.

"Foreign-owned companies have been accused of failing to hire enough locals, particularly black Bermudians and of causing an undue strain on the Island's infrastructure.'' The article talks also of racial tensions which have been bubbling under surface on the Island for years.

"International businessmen believe that the current government does not understand that they cannot remain competitive if they are forced to hire unsuitable staff just because they are Bermudian.'' Mr. Marchant added: "Most bosses consider it too early in the life of the present government to start seriously thinking about relocating but we have been told that expansion plans within the island have come to a stand-still.'' The article then goes on to state the history of what happened in the Bahamas under Prime Minister Sir Lynden Pindling from 1967, when the island taxed international business and made work permits more difficult to get.