industry head warned yesterday.

Mr. Tony Goodfellow, Chamber of Commerce spokesman for international firms, condemned "spiralling'' rents for executive homes.

International business earned more for the Country than tourism, but landlords could "kill the goose that laid the golden egg''.

Mr. Goodfellow said almost 300 of Bermuda's 7,000-plus exempted companies had a physical presence here.

They had chosen the Island for its mid-Atlantic location, legal system, stability, communications and relative lack of bureaucracy.

But there were many other safe havens in the world that were less expensive.

"One has to wonder how long some companies will remain if the cost of executive housing rental continues its current manic upward spiral.'' Mr. Goodfellow, speaking to Hamilton Rotarians, appeared to call for Government to step in.

"As the Minister of Finance says, there is not much you can or want to do in a market-driven economy.

"But I would suggest that when rent at the non-executive level becomes `upwardly mobile' -- and there is reason to believe that is happening already -- it is time to change the system and hope that, in the meantime, greedy landlords do not kill the goose that laid the golden egg.'' Mr. Goodfellow's warning comes after a similar statement from realtor Mr. Jack Outerbridge.

Mr. Outerbridge, president of LP Gutteridge, spoke out in July about "astronomical rents'' for executive homes.

He said: "Rents might be driven up to such a degree that Bermuda is no longer a desirable location for international businesses.'' He had heard of rents well above market value, as high as $25,000 a month. Mr.

Goodfellow is public relations chairman of the Chamber's international companies division, which represents companies with a physical presence on the Island.

He said if Bermuda became more expensive, international companies could quickly leave.

A long-term Government plan was needed for their future development. He criticised employment tax and hospital levy as breaches of "the spirit of the letter `exempting' such taxes until the year 2016''.

But he was pleased to hear the Finance Minister was thinking of relaxing restraints on exchange control and overseas investment.

It was a "popular misconception'' that because international business had become the mainstay of the economy, people were losing their jobs in tourism.

But international business brought in up to 100,000 visitors a year, many of whom returned for vacations and spread the word about the Island.

Another misconception was that international firms employed mainly expats. In fact, said Mr. Goodfellow, such companies were the reason for the existence of more than 7,000 jobs in legal services, accounting, banking and tourism.

Around 2,800 people, 2,100 of them Bermudians, were employed by the 300 companies with a presence on the Island.

Bermudian employees included chief executives, finance directors and other senior managers. And two of the larger employers had more than 90 percent Bermudian staffs.

"Unfortunately, because of the way in which employment tax and hospital levy are calculated for exempted companies, it has made it very expensive to take on trainees.'' But international business representatives would meet teachers next week to establish what sort of training was needed for the future.

Mr. Goodfellow stressed the "remarkable public spirit'' of international companies. In 1991, he said, $3.6 million was spent by such firms in scholarships, support for local causes and charity donations.

The international companies education awards scheme had handed out more scholarship money than any other organisation, apart from Government.

In 1990, offshore business had contributed $96 million in public sector revenue -- the equivalent of about one third of Government's current account spending.