Premier Ewart Brown this morning welcomed plans for an inquiry into British Overseas Territories by the Foreign Affairs Committee of the UK House of Commons.

The comprehensive review will look at standards of governance, transparency and accountability, the role of governors and regulation of the financial sector.

Dr. Brown said he “very much welcomed” the audit, as it was in keeping with a number of issues raised at last year's Overseas Territories Consultative Council meetings in London.

“The FAC review will provide a useful and timely channel for dialogue with the UK parliament on many issues of importance to Bermuda and other Overseas Territories,” he said.

Deputy Governor Mark Capes said: “Like other select committees, the FAC is one of the key structures to ensure accountability in the Westminster system of parliamentary democracy.

“It plays an important role in monitoring the policies and performance of the FCO (Foreign and Commonwealth Office).

“In the course of conducting such an inquiry, we would expect the FAC to visit one or more of the Overseas Territories, but that is entirely a matter for the FAC to decide.”

The main focus of the inquiry, due to start in November, will be security and good governance. The work of the Overseas Territories Consultative Council will also be considered, plus procedures for the amendment of constitutions; human rights; the application of international treaties, conventions and other agreements to the Overseas Territories; and relations between the Territories and the UK parliament.

The announcement of the inquiry comes less than two weeks after the Foreign and Commonwealth Office reissued a 2003 paper giving guidance on good governance in the Overseas Territories.

The UK National Audit Office is also carrying out a review of the effectiveness of the FCO's work in relation to the Territories, with a report expected in the fall.

* Full story and reaction in tomorrow's Royal Gazette.