Equality Regulations was probably the best thing for the Island in the circumstances.

The calls of business leaders for more time to discuss the regulations were met when Opposition and Independent Senators joined forces to send the bill back to the House.

It was interesting that few, if any, of the Senators who voted against the bill actually opposed its spirit. What they were concerned about was business' complaints about lack of consultation.

Government should take heart from that. There are segments of the regulations which give rise to concern, especially questions about salaries and these should be looked at seriously.

But in spite of concerns on the part of some that the regulations foreshadow the advent of affirmative action as opposed to being an end in themselves, the Government should be taken at its word that the statistics are intended only to measure the degree of integration in businesses.

In the event that a business is asked why a particular racial group is under-represented, it should be able to explain why. Any good company should also recognise that there are benefits to being racially diverse and that the advancement of Bermudians -- white and black -- within a company should, at the very least, bring stability to a company and ensure that a wide range of local knowledge is kept within the firm.

Government needs to recognise that consultation is good and that businesses -- from the chief executive down -- need to "buy in'' to the process for it to be a success.

The example of STW Fixed Income Management chief executive William Williams in urging people to boycott the survey is an example of what can happen when buy-in does not occur.

Having said that, all responsible businesses should ignore Mr. Williams' call, which went against the collaborative nature of Government-business relations and failed drastically to recognise the society in which STW chose to operate.

It is doubly unfortunate because the call for civil disobedience discredited the valid points that he made on behalf of international business when he first announced his company's departure.

The issue for Government and business now is two-fold. Government must recognise that there is deep unease among all international companies -- and a good many local ones as well -- about the current business climate.

If this unease is not redressed it will drive businesses considering incorporating in Bermuda elsewhere and companies already on the Island will consider relocating part or all of their operations to "friendlier climes''.

Government must also recognise that many international companies -- and non-Bermudians -- already do an enormous amount in terms of training, education and support of the community.

Business needs to recognise that Government was elected on a platform which promised to address Bermudians' -- and black Bermudians in particular -- feelings that they were being left behind or their needs were being ignored.

This should have served as a clear message that things could not go on precisely as they had before. Government and business must develop a better understanding of each other's needs and aims. The Senate's refusal to pass the regulations gives them time to do just that.