political controversy which has ensnared him.

Speaking from a hotel in Spain last night, Mr. Smith said he would deliver a statement to the House of Assembly.

He refused to say whether he would resign, or offer a public apology.

"I'm coming home for this Friday's session, and want to reserve comment until then.'' The Paget West MP -- who has been under pressure to resign -- hoped to give Bermuda "the correct interpretation'' of private remarks he made last Friday in Parliament to ex-Cabinet Minister Mr. John Irving Pearman. Mr. Smith, also Minister of Planning and Natural Resources, had labelled United Bermuda Party rebels "wicked'' and a "nasty bunch''.

He also told Mr. Pearman he had not looked at Government backbencher Mr.

Trevor Moniz's planning appeal over an "illegal house''.

"I said I ain't looking at it for now,'' he added.

The remarks were picked up by a House of Assembly microphone, shocking radio listeners.

"It was completely inadvertent. I really thought the microphone was turned off,'' Mr. Smith said last night.

Mr. Smith said he had not spoken to Mr. Moniz since the furore erupted, but he intended to do so on his return to Bermuda.