creditable job when they met with some of the leading members of the US financial press in San Francisco this week.

That is good news because Government needs to show it is not afraid to make its case on the so-called Bermuda tax loophole and it also needs to reverse the mainly negative press that Bermuda has received in the US media. On a third count, it shows the Government, which is still relatively new, can manage the financial interests of the Island well.

According to the Premier, Government and the international business community have been quietly making Bermuda's case in Washington DC.

At the same time Bermuda needs to counter the energetic public relations campaign being waged by US insurance companies who claim their Bermuda rivals are engaged in "phony'' business.

Government mst take a careful approach on these issues. Getting involved in mudslinging and a war of words will not help; measured responses showing that international business is legitimate, innovative and a key part of the world insurance market will do more good in the long run.

Premier Smith got much of this right yesterday. She said she felt singling Bermuda out was a mistake and she made the point that Bermuda companies are no different from hundreds of other firms from different countries which do business in the US.

And she is right to say that the US has no business in interfering with other countries' tax codes, although she should bear in mind that the US is entitled to levy taxes on business conducted in the US; that is the crux of the issue and Government should make it clear that companies which wish to evade legitimate taxes are not welcome in Bermuda.

Nonetheless, it is good to see the Government step and make statements on this key issue. It is just a shame that it has taken this long.

TALKING TOUGH EDT Talking tough Transport Minister Ewart Brown has given tough talking-tos to two different groups in recent days.

In one case, he has warned Transport Control Department inspectors to hold all vehicles to the same standards. There is a perception that inspectors treat vehicle owners differently, or treat people differently depending upon the time of day or their mood.

Dr. Brown has also warned Paget hoteliers not to pressure him through the media to make changes to the Paget/Warwick ferry schedule. Leaving aside the irony that having given the vehicle inspectors a public scolding, he has warned the hotels not to so the same thing to him, Dr. Brown needs to tread carefully in both these cases.

It is important that he ensure that the inspectors really are treating people differently. Drivers who need to get their vehicles relicensed are quick to cry foul when they are turned down. What TCD needs is a clearer and more detailed checklist of faults than it has now and, if necessary, a method of appeal to a senior inspector. If an inspector is consistently in the wrong, then he or she can be retrained or dismissed.

Dr. Brown's warning to the hoteliers is unfair. Essentially, he is saying, "if you go to the Press, don't expect any help from me regardless of the merits of your case''. That is a breach of freedom of speech and a dangerous statement for any Cabinet Minister to make.

The fact is that the hotel owners -- and their paying guests from abroad -- are frustrated because they have lost a service which worked and no one seems to be able to explain why.