Bermuda?s billion dollar tax-exempt economy may be at risk by a change in the US political landscape likely to occur next month after the House of Representatives election.

A Congressman, of Bermudian descent, has warned the Island?s leaders to remain vigilant and actively engaged with both sides of America?s political divide to avoid new US legislation being drawn up that could deal a crippling blow to Bermuda?s golden economy.

Only by reinforcing how important maintaining the current Bermuda-US business relationship is will the Island likely avoid a political change of mind on tax breaks for exempt companies that could bring the Island?s financial engine to a near halt.

Democrat George K. Butterfield, whose Bermudian father emigrated to the States in the early 1900s, has pledged to keep fighting in the Island?s corner but says he also needs ?reinforcement? from Bermuda?s political leaders and the exempt companies themselves. Currently the Republicans control Congress but that could soon change. ?The Republicans have gone out of their way to acquaint themselves with the exempt companies in Bermuda and I must give credit to the exempt companies for reaching out to tell their story.

?There is some suspicion by political analysts that the Democrats may become the majority party after the November 7 election,? said Mr. Butterfield.

If it happens the exempt companies and Bermuda need to ensure the Democrat leadership understands the consequences of changing tax laws with regard to the exempt companies.

Mr. Butterfield, who represents the First District of North Carolina, has spoken with US Consul General Gregory Slayton and a number of Government Ministers about the matter. He said: ?I want to be a messenger to the US Congress to tell the Bermuda story and explain what the consequences would be if exempt companies were no longer given the tax advantages they have.

?While amending the tax law to require these companies to pay more tax would result in greater revenue for the US, it would also throw your economy into a tailspin and you are too important to the US to allow that to happen.?

The historical friendship between the US and Bermuda, their geographical closeness and their shared interest in the global war on terror are reasons for co-operation and support to continue, but it requires continuous work on both sides, said Mr. Butterfield.

Of the upcoming PLP leadership election the Congressman said: ?I?m aware of the political scene in Bermuda, but that?s Bermuda?s business and I think it would be a mistake for any American to try to influence the elections in Bermuda. I?ve known the Premier and Dr. Brown for many years and I can work with either one.?

Asked about challenges Bermuda faces now and in the future he pinpointed urban sprawl and transportation as key areas.

?One concern is what we call sprawl in the US. There has been an explosion in Bermuda. I started coming here in 1953 and it was a very desolate Island, the television went off air at 6 p.m. and there were only two stations. And traffic on the streets was very limited. But now you have sprawl and growth. To have sustained growth you have to have the infrastructure in place and transportation is the greatest infrastructure need that you have in Bermuda. If this Island was to grow from 60,000 to 100,000 residents it would be unmanageable because of difficulties with transportation.?

Mr. Butterfield?s grandparents and father came from St. George?s and he has been an occasional visitor to the Island over the past 50 years, keeping abreast of developments.

In 2004 the former Superior Court judge was elected to Congress and he has continued to serve as the representative for the people who live in what he describes as one of the poorest districts in the US.

He is an African-American and his father was a community activist who helped hundreds of fellow African-Americans to register to vote in the late 1940s and, in 1953, became the fourth African-American to be elected to political office in North Carolina.

His campaign against a voting mechanism change that had led to his losing his city council seat became part of the basis for the later 1965 Voting Rights Act.

Mr. Butterfield said: ?Now, in 2006, because of the Voting Rights Act we have 300 black elected officials in my congressional district. From zero to 300 and that?s phenomenal and I would like to give some credit to my father for that.?

It was the impact of his father on the community that gave Mr. Butterfield the inspiration to give back to his community, first as a judge and now as a Congressman.

He has been visiting the Island with his daughter Valeisha and his former wife Jean Farmer-Butterfield, who also faces the polls on November 7 as she seeks a third term in the North Carolina General Assembly.

US Consul General Mr. Slayton, said of Mr. Butterfield: ?There can?t be many places that have a first generation congressman. It?s a special thing ? the son of a Bermudian who emigrated to the US has become a US congressman. We have been delighted to have him here, he is a strong advocate for Bermuda. I think he is going to be more and more influential within the Democratic caucus and Congress at large. It?s wonderful to have him with his roots and deep love for Bermuda here with us.?