Finance Minister Paula Cox yesterday said Bermuda's treatment by the Organisation for Economic Co-operation and Development (OECD) and the UK Government in their clampdown on tax havens "does not make sense".

She was talking about the Island's inclusion on the OECD's "grey list" of jurisdictions considered not to have implemented to international tax transparency standards they had already committed to.

Additionally, she was referring to UK Prime Minister Gordon Brown's letter to all British territories considered financial centres, which urged the signing of 12 tax information exchange agreements (TIEAs) by September or face the possibility of sanctions.

"I would have thought that people who have responsibility for us (Britain) would understand what we do," Minister Cox said. It does not make sense to have the UK Treasury telling how good we are and then a different part of the UK Government comes out with a different line."

She suggested that Mr. Brown had written the letter to ensure that "we are all on the same page".

Bermuda committed to OECD standards in 2000 and has already signed 11 TIEAs, with two others agreed but not yet signed. Alongside the Island on the grey list are some countries that committed to OECD standards only this year.

Again, Ms Cox said the lack of differentiation of Bermuda from the "Johnny-come-lately" countries "does not make sense".

"I think we were always were a top-tier country," Ms Cox said. "Most people will tell you that they chose Bermuda for their business because of its reputation, they don't think of sharp practice happening there.

"There is a consistency about the way dealings are done in Bermuda and a strong framework in terms of legislation and regulation.

"As a result of the commitment we made to OECD standards in 2000 and the work we have done since, Bermuda certainly belongs in the top tier."

Ms Cox was speaking with The Royal Gazette after addressing The Bermuda Breakfast, a meeting hosted by global insurance brokerage Willis Holdings, at the Rosen Center Hotel in Orlando.

During her speech she told a packed hall of insurance industry executives: "The Bermuda model works - many of those pontificating in Washington need to understand what's going on."

Afterwards, she said Government was stepping up its efforts to get the message over to US lawmakers, some of whom have proposed legislation that would be punitive to the Bermuda insurance inShe added that a site for the planned Washington office for the promotion of Bermuda trade and tourism had still not been found, but she anticipated it would open "within the next six or seven months". Location was crucial in terms of what benefit the office would reap, she added.

Another potential boost for Bermuda's relations with the US Government is that the daughter of the Island's principal economic policy adviser Andrew Brimmer has landed a high-ranking job as US Under Secretary of State.

In that role Esther Brimmer works alongside US Secretary of State Hillary Clinton.

Dr. Brimmer helped to secure Minister Cox's opportunity to speak to an influential US media audience at the National Press Club in Washington last week, while she was in the US capital to sign TIEAs with eight countries.

Ms Cox said the reception she has received at the conference so far made clear that the insurance industry valued Bermuda.

"Success attracts success," Ms Cox said. "What you're seeing at RIMS is the real world, not just politicians in different places saying things to make headlines. Here are people who really know the industry and the credibility that Bermuda brings.

"I am a politician and I don't want to distance myself from politics, but as a politician you've got to know when to hold and when to fold."

One senior executive had indicated to her that the US would not have sufficient capacity to meet its insurance needs without the contribution of the Bermuda marketplace.

During her speech, Ms Cox said "those in other places who talk about shutting down Bermuda" did not seem to realise that "the capacity we provide can't be provided by many of those who are onshore".

She added that she was in favour of efficient regulation, rather than over-regulation.

Later Ms Cox joined Premier Ewart Brown for the traditional "walkabout" around the Risk and Insurance Management Society Conference exhibits at the Orange County Convention Center.