Minister Grant Gibbons said yesterday.

And he called on Cabinet to re-think tough new proposals on work permits and mandatory reporting of the racial make-up of workplaces in a bid to cut bureaucracy.

Dr. Gibbons was speaking after exempted company chief William Williams announced his multi-billion dollar STW Fixed Income Management was set to quit the Island -- with the loss of up to 18 jobs.

Mr. Williams blamed increasingly restrictive rules governing business -- including time limits on work permits and reporting to the Commission for Unity and Racial Equality for his decision to shift operations from Bermuda to California.

In a written statement yesterday, however, Home Affairs and Public Safety Minister Paula Cox played down the departure.

She said: "It is always unfortunate when international companies such as Mr.

William Williams' STW leave Bermuda with the attendant loss of jobs and revenue this entails.

"However, such things happen regularly and naturally as businesses change their focus.'' And she claimed the firm had been planning a move for "months, if not years'' -- an assertion denied by Mr. Williams.

And she insisted: "We are listening, and we will continue to listen with a strong understanding of the importance of international business to the future of Bermuda.'' But Dr. Gibbons said: "While it might be tempting for the Minister to dismiss the departure as a one-off, I think it's very important to take the departure of this particular company as a clear indicator that not all is well with international business' perceptions of Bermuda.

"While I certainly hope -- for Bermuda's sake -- that this is not the tip of the iceberg, one of the points which needs to be made here is that companies do not give advance notice or negotiate their departure with Government.

"When they make up their mind to leave, they just leave.'' Politicians trade shots over firm's departure And he said Government should get down to business with the international sector -- and consider easing off restrictions.

Dr. Gibbons added: "They need to notice these signals that it's time to drop the political rhetoric and the lip service given to communicating with international business, sit down with them and re-think some of the messages being sent by Government Ministers and Government itself.

"They also need to re-think some ill-conceived policy decisions and be prepared to change their thinking with regard to some of the additional bureaucratic issues they have been thinking about, whether in regard to immigration or CURE.'' And he said: "When our economy takes a turn for the worse and we have had some warning signs -- at this point in Bermuda's history we can't afford to lose the business and goodwill of the international business sector here. This is not the time to be dismissive or point the finger of blame at others but to try and solve the problem -- and it's time Government recognises they do have a problem.'' Mr. Williams warned on Thursday that new rules would cripple businesses rather than provide opportunities.

And he predicted his decision was the thin end of the wedge -- with lost business from firms deciding to set up elsewhere, on-Island international business looking for a move, plus a knock-on effect on Bermuda-based suppliers of services.

Mr. Williams pointed out yesterday that his firm had been in Bermuda for nearly six years -- which meant, according to the Minister's claims, it must have started to think about moving just after it arrived.

And he said: "It's a very bland statement. To imply that the climate hasn't changed I don't think is an accurate depiction.'' Mr. Williams added he had put roots down in Bermuda and regarded it as home.

But he said: "This did not seem like a predictable, pro-business Government to me -- and as your concern grows, you finally pull the trigger and go.

"We are facing a situation here where we have quite a bit of uncertainty and a climate very different from the climate when I came here.'' BUSINESS BUC