One month after the Mid-Ocean News published a story alleging Government's "secret bid" to hire consultants from the Canadian tax authorities to help revamp the Island's tax code, Finance Minister Eugene Cox is still waiting for a retraction.

But the weekly paper's Editor Tim Hodgson said that he still stands by the story and this Friday's edition will contain a clarification. This week media chiefs agreed that, given Government's strong denial of the story, the newspaper owed its readers some sort of clarification.

"Whichever way you look at it, Mid-Ocean readers deserve a definitive explanation as to whether its tax story was fact or fiction," said Bermuda Sun editor Tony McWilliam.

Mr. Cox denied the story on the day it appeared and again in the House of Assembly on July 26. A week later his Permanent Secretary Donald Scott sent a fax to the newspaper's Editor, Tim Hodgson, asking for a retraction. "The patently false statement was central to Ms Wood's story and it appears that what has been exposed is the editorial slant and bias of the Mid-Ocean News," the fax said.

Last week Mr. Cox said that Mr. Hodgson had not responded to his request and had not provided any substantiation of the story.

Mr. Hodgson, who has been off the Island for three weeks, said that he did not receive directly any request for a retraction.

"It was a front-page story and one would have liked to have seen a story in a similar position correcting it," said Mr. Cox.

Mr. Hodgson said at the time that the Mid-Ocean stood by the story which said that Government planned to hire three consultants from the Canada Customs and Revenue Agency (CCRA) to look at how income tax could be adapted to Bermuda - a statement the Government said was "patently false" and "unsubstantiated".

The Royal Gazette later reported a CCRA spokesperson as saying that the agency was not involved in a review of Bermuda's tax system and that no one from the agency was on the Island or planning a trip. But Mr. Cox declined to comment when asked by The Royal Gazette whether Government had commissioned a study or was planning to do so.

The Mid-Ocean story also featured Opposition Leader Grant Gibbons complaining about Government "secrecy" and criticising income tax. "They were giving the impression that there was something underhanded going on," said Mr. Cox. At the time of the story the Finance Minister reminded the media that the Progressive Labour Party (PLP) had stated in its election platform, and subsequently in budget statements, that there would be no change in the tax code.

"I am disappointed that they have not retracted," said PLP chairman Neville Tyrrell last week. "It is not helpful that a newspaper would not take his word seriously and be prepared to follow his request for a retraction."

While the PLP and the Opposition United Bermuda Party (UBP), have complained about stories in the media, the Mid-Ocean News story raised some eyebrows among media professionals.

VSB news director Chris Lodge said that while his station had reported on the Mid Ocean story, it had followed up the same day with a strong denial from Mr. Cox. "The ball is in their court. It's pretty much at a deadlock until the Mid Ocean can say `here's the proof'," Mr. Lodge said.

Given Government's strong denials, he added, the Mid-Ocean News had a "certain amount of responsibility" to go back to their sources to verify the facts and report back to the public. "They should have perhaps backed up their story with a follow-up instead of this silence," he said. "I've known the Editor of the Mid-Ocean News for many years and would encourage him to do a subsequent follow up to the original story."

ZBM's news director Jim McKey echoed similar sentiments. "If there is no basis to the story, and Government has maintained all along that there is no basis to the story and they never contacted these folks in Canada, perhaps a clarification should be run - in my opinion," he said. "I don't think they should just ignore it."

Editor of The Royal Gazette, William (Bill) Zuill refused to comment saying the matter was between the Mid-Ocean News - which is owned by the Royal Gazette Ltd. but has a separate editorial staff from The Royal Gazette - and the Government.

Mr. McWilliam said that the newspaper could be sticking to its story and looking for ways to substantiate it.

"Alternatively the paper realises that it erred but is hoping that if everyone forgets about it, no apology, clarification or explanation will be necessary."