Government has refused to share with the public the contents of a letter from the British Prime Minister warning Bermuda to be more tax transparent — or the Island's reply.

Gordon Brown sent individual letters to several British overseas territories last week telling them they would face tougher sanctions if they did not improve their sharing of tax information with other jurisdictions, according to international news reports. A Government spokeswoman confirmed the correspondence late on Tuesday evening, saying the Cabinet Office had responded. She added: "It should be further noted that the Cabinet Office will not be disclosing contents of either correspondence to the media."

Opposition leader Kim Swan said last night that the refusal to share the information with taxpayers was unacceptable. "This is very important issue for Bermuda — one that has the potential to damage or enhance our economy," said Mr. Swan. "It is only right that the Bermuda public should be kept informed about what the UK is asking us to do in this critical compliance area, which is vital to Bermuda's ongoing reputation or success as a financial jurisdiction."

Mr. Brown's letters to the overseas territories follow several of them, including Bermuda and the Cayman Islands, being placed on a "grey list" of nations identified by the Organisation for Economic Cooperation and Development as not yet fully complying with international banking standards. News agencies reported last week that the Prime Minister's letters urged the territories to improve their tax information sharing before September or face sanctions.

On Tuesday, Cayman Net News published the full letter from Mr. Brown to Kurt Tibbetts, the Leader of Government Business on the Caribbean island, and interviewed the Minister for International Financial Policy about its contents.

Mr. Swan said the Bermuda Government would do well to take the same approach. "We have to wonder what they are trying to hide," he said. "We keep hearing them talk about transparency but see nothing of it in practice. The Cayman Government has been transparent on this issue. Why not Bermuda?"

The grey list of nations was compiled during deliberations at an April 2 summit in London involving 19 of the world's 25 most-developed nations and the European Union. Bermuda has moved a step closer to being taken off the list after reaching agreement with the Netherlands on a tax information exchange agreement, The Royal Gazette reported earlier this week.

This newspaper's A Right To Know: Giving People Power campaign urges Government to be more transparent and provide the public with information about issues concerning them and their tax dollars.

Asked if Government House would release the letter from Mr. Brown, Governor Sir Richard Gozney said yesterday: "I follow the principle that the release of any letter is a matter for the recipient."