his work permit extended by a year.

But Home Affairs Minister the Hon. Irving Pearman announced that the man would be replaced, at the Grotto Bay Hotel, by a Bermudian when the permit expires.

Mr. Pearman said: "In recent months much publicity have been given to an allegation that the restaurant manager had made a racially offensive remark when dealing with members of staff.

"Shortly after the incident I directed the Chief Immigration Officer to investigate the allegation. He reported that it could not be satisfactorily confirmed.'' At the hearing of the Trades Disputes Tribunal into differences between the Bermuda Industrial Union and the Grotto Bay, the issue was raised again.

Mr. Pearman said: "On the basis of that information the case was re-opened.

Again, however, there was insufficient evidence to substantiate the allegation, the case amounting to one man's word against another with no independent corroboration of any kind.

"Recently the Grotto Bay Hotel has applied to renew the work permit of the restaurant manager, having advertised unsuccessfully in finding a suitable Bermudian to do the job.

"I have agreed to allow a one-year extension of his permit. The hotel has given a commitment that it will find a Bermudian to replace the manager at the end of his contract and I have made that a condition of the extension.''