Ireland could take Bermuda's place at centre of a debate from American lawmakers and in international news reports over companies wanting to slash their tax bills.

The heat could be off the Island now with the most high-profile company to announce its reincorporation, Stanley Works, doing a U-turn and announcing it would keep its base on American soil. The New York Times this week reported that corporate efforts to save taxes by moving to Bermuda was "nearly dead". But the focus, according to the New York Times, could shift to another island: Ireland.

NYT tax journalist David Cay Johnston said the flow of companies moving to Bermuda had dried up after numerous drafts of damning legislation were introduced by US lawmakers since early in the year. Mr. Johnston wrote that companies have not given up on moving offshore for its tax advantages: "Tax advisers are already selling the idea of Ireland as an alternative to Bermuda, the Cayman Islands and Panama, two people who have heard such pitches said yesterday.

"Ireland has low corporate tax rates and favourable tax-treaty terms with the United States."

Meanwhile Opposition Leader Dr. Grant Gibbons has said the net result of the debate that has been waged on Capitol Hill since early in the year, could be damaging to the international business sector as companies may now think twice about setting up on the Island.

Calls made to the Government by The Royal Gazette over the last week on the matter have not been returned.