The United Bermuda Party has slammed Premier Ewart Brown for his "astonishingly counter-productive" remarks that Bermudians should be insulted by Britain's plan to investigate the Island's financial regime.

The review, announced by UK Chancellor of the Exchequer Alistair Darling last week, will also cover financial operations in Cayman, Isle of Man, Guernsey, Anguilla, Turks and Caicos and the Virgin Islands.

Dr. Brown told the House of Assembly on Friday that Bermuda had nothing to fear or hide from the probe. But he added: "What we do have, is just reason to be offended and insulted."

Britain has supreme authority over Bermuda but did not contribute one penny to its livelihood argued Dr. Brown who said the UK investigation "should be an affront to every Bermudian". In a statement responding to the remarks yesterday, United Bermuda Party leader Kim Swan said the comments showed a Premier out of touch with what Bermuda needs.

He said that since the reply to the budget almost ten months ago, his party had repeatedly urged the Government to prepare the island for a widely anticipated economic downturn, and example-setting leadership ranging from spending discipline measures such as a cap on public service hiring, to the deferral of a pay rise for MPs.

"We have called for the preparation of social support programmes such as housing assistance and social assistance, in anticipation of increased demands. "Our concerns were triggered by a Government budget that took no account of the economic storm warnings," he said.

"Our concerns deepened during the summer as the government continued wasteful and excessive spending despite the real possibility that its revenues would fall short because of the weakening US economy.

"Our concerns became acute earlier this month when the economic situation was mentioned in just two paragraphs of the Government's ten-page speech from the throne.

"We concluded we were observing a government in denial — 'a deer caught in the headlights', as we said in our reply to the throne speech. Bermuda needs assurance that its Government is focused on the real challenges facing the island.

"Unfortunately, Friday's statement by the Premier on the UK Treasury review of Bermuda says he does not understand what Bermuda needs now.

"Instead of simply accepting the review, which is not unlike reviews of Bermuda by outside organisations such the International Monetary Fund and the OECD, the Premier chose to turn it into a matter of wounded pride and the need for independence.

"It was an astonishingly counter-productive statement that was more about ego and a misplaced sense of political opportunism than sober leadership. He could have used the statement to help people understand the review and the economic context that gave rise to it.

"Instead of building consensus and unity, we are left with words by the Premier that once again alienate, mislead and divide people — whether Bermudians on the question of independence or UK officials with whom we need to work with on any number of issues. It was an exercise to distract Bermudians from the real issues of the day."

Mr. Swan concluded by calling on the Government to "set aside the emotions and the baiting to focus on the statecraft necessary to help Bermuda".