Crisis-hit Environment Minister Tim Smith yesterday told MPs, Government backbencher Trevor Moniz, and Bermuda: "I'm sorry.'' As he battled to escape the controversy entangling him, the Paget West MP also pulled out of hearing the Moniz planning appeal.

But he made no mention of resigning -- despite the growing clamour for him to quit the Cabinet.

Mr. Smith went on to reject accusations he had breached confidence by speaking to ex-Cabinet Minister Mr. John Irving Pearman about Mr. Moniz's appeal.

"Appeals are not submitted nor considered in confidence.'' Yesterday morning's public apology in the House of Assembly was greeted in silence by both sides as they listened intently.

It was the calm before the storm, however.

For during the Motion to Adjourn, Opposition Leader Mr. Frederick Wade said Premier David Saul should have followed the example of ex-Premier Sir John Swan, who forced Mr. Llewellyn Peniston to quit the Senate in the 1980s after he handed an Opposition Senator a note threatening his private business.

Mr. Wade said he heard from Bermudians yesterday who felt Mr. Smith was being treated differently because he was white and Mr. Peniston was black.

"If Mr. Smith was a black member, he'd be fired,'' shouted Shadow Health and Social Services Minister Renee Webb.

"The Minister demonstrated a lack of understanding and a lack of appreciation for the exercise of his power that's so awesome,'' Mr. Wade said.

When Dr. Saul and the rest of the Cabinet stamped their feet in approval following Mr. Smith's speech, "it was for me a very sad moment in my public life.'' Dr. Saul, who spoke amid cries of "shame'' from the Opposition benches, said the example Mr. Wade cited was "not strictly in tune'' with what Mr. Smith did.

No statement of bias had been made, he said.

Meanwhile, in a dramatic development shortly after Mr. Smith's speech, it emerged Mr. Moniz had withdrawn the appeal over his Smith's Parish home.

Planners had ruled one facade of the property was three storeys -- instead of two.

Planning Director Mr. Brian Rowlinson confirmed the move, saying: "We are seeking legal advice about what to do next.'' He added: "There is this difference of opinion between Moniz and the department over whether he has planning permission for the entire development.'' Mr. Smith, also Minister of Planning and Natural Resources, has come under pressure to resign over off-the-cuff comments made to Mr. Pearman while he thought a microphone was switched off.

Astonished radio listeners last Friday heard him calling United Bermuda Party rebels, including Mr. Moniz, "wicked'' and a "nasty bunch''.

He also swiped at Mr. Moniz, claiming the Smith's South MP had appealed over an "illegal'' house.

According to a transcript of the conversation, Mr. Smith said he had not looked at the appeal.

"I said I ain't looking at it for now. The naughty b*****. He built it anyway. Couldn't care less. They're a law unto themselves.'' Smith apologises but does not step down The comments triggered accusations Mr. Smith had compromised his position as a quasi-judge when considering appeals.

Mr. Smith had been speaking after five Government MPs, including Mr. Moniz, stayed away from the House to help Opposition MP Mr. Stanley Lowe become elected Deputy Speaker.

A bid to get UBP backbencher Grace Bell elected wad defeated.

In the House yesterday, Mr. Smith, who has just returned to Bermuda from Madrid after attending an International Commission for the Control of Atlantic Tuna, said he grateful for the chance to explain the controversy.

"Further, Mr. Speaker, I thought it important to leave the ICCAT Meeting in Madrid yesterday so as to attend today's House session and make the following statement.

"I might add that our meetings in Madrid were progressing very well, so much so, I believe we are moving closer to a viable and successful offshore fishery.'' Mr. Smith said last Friday he was engaged in a private aside with a Parliamentary colleague.

Unbeknown to him, however, his off-the-cuff remarks were being received by a nearby microphone and broadcast over the radio.

"During the course of the selection of Deputy Speaker, I was greatly disappointed when my colleague the Honourable Member Grace Pitcher Bell lost the chance to become the Deputy Speaker as a result of the absence of certain members of the United Bermuda Party during the selection process.

"The Honourable Member, Mrs. Bell, has served the Government and people of Bermuda well, over a very long period.

"Her contribution in the House speaks for itself and having gotten to know her personally, I have a tremendous respect for her concern for all Bermudians and her depth of commitment for reaching out to all sectors of the Community.

"It was her sense of fair play and her deep respect for Parliament that made me feel so strongly that she should become Deputy Speaker.

"I nominated the Honourable Member in good faith and with all the good will in the world.

"Therefore, Mr. Speaker, when the Honourable Member Mrs. Bell was defeated I let my emotions get the better of me.

"In a moment of frustration I clearly uttered words which I regret. My remarks reflected my deep felt frustration that the result was entirely avoidable.

"Mr. Speaker, I wish to publicly apologise to the Honourable House Mr. Moniz and the people of Bermuda.

"Important, Mr. Speaker, is the presumption that I breached a confidence when I mentioned a planning appeal.

"Appeals are not submitted nor considered in confidence. The public is notified by a notice posted on the Department's notice board that an appeal had been received.

"Also the application files -- even during an appeal -- are open to public scrutiny.

"It is certainly not a breach of confidence to tell another Parliamentary colleague about an appeal.

"It is a matter of record that I have visited the site in question. The technical officers within the Department of Planning have been working for several months on this case in the hope of arriving at a practical solution which, if successful, would have avoided the case having to be decided by the Minister.

"Since the appeal is now being heard by the Minister, to eliminate any appearance of bias, I have removed myself from hearing this appeal and will refer this case to another Minister for consideration.

"Finally, Mr. Speaker, I would like to once again apologise to the House to Mr. Moniz and to the people of Bermuda.'' Yesterday Premier David Saul said he considered Mr. Smith's apology "the end of the matter''. He did not see there were grounds to resign.

"I had a long talk with Tim Smith. I asked him to make that apology to the House and to Mr. Moniz.

"It is my considered opinion he has learned a traumatic lesson which I think will make him a better Minister.

"We need to learn to keep indiscreet thoughts to ourselves. Everyone is allowed one mistake. We are all human.'' Dr. Saul said British Prime Minister John Major had made a similar gaffe when using crude language to describe Parliamentary "Euro Sceptics''.

"I think there is a lesson for us all here. Everyone must be a little careful.