Opposition Leader Kim Swan said last night that advertising agency GlobalHue appeared to have a "racially tinged" approach to the business of attracting visitors to Bermuda.

The Shadow Tourism Minister described being "mystified and offended" by a claim from the US firm that it chooses to work with Bermuda because the majority of its citizens are black. The assertion was made in response to criticism contained in Auditor General Larry Dennis' damning special report on Government's finances.

Mr. Dennis discovered that the Island's Department of Tourism, which pays GlobalHue to place television, radio and advertisements, may have forked out $1.8 million too much to the company and questioned whether taxpayers were getting value for money.

GlobalHue's executive vice president Jaqueline Reynolds replied by saying that Bermuda was the company's smallest account and it made its profits from other clients. In a statement released through Premier Ewart Brown's press secretary, she cited the Premier's "vision", the racial make-up of the Island and the fact that Bermuda has a "black government" as GlobalHue's reasons for continuing the relationship.

Mr. Swan said: "I am mystified and offended by GlobalHue's statement that its work for Bermuda Tourism is driven by its desire 'to be part of a country that has a majority of citizens of colour and a black government'.

"Its statement suggests it has a limited understanding of Bermuda — the client. I am concerned it is pursuing a narrow, racially tinged approach to the business of attracting visitors to our shores."

Mr. Swan claimed that over the past decade the Department of Tourism had allowed itself to be distracted from the commitment necessary to get "heads into beds".

He said: "We have diminished our presence in proven markets of the US northeast, got distracted by marketing forays to the far corners of the world and spent millions of dollars on local events and marketing initiatives such as faith-based tourism that have simply failed as business endeavours. GlobalHue's comment today suggests it is part of the problem.

"We must be a tourism destination that casts its appeal to all people. Ultimately, green is the only colour Bermuda tourism should be interested in."

Meanwhile, Opposition Senator Jeanne Atherden said yesterday that Government's response to the Auditor General's report had taken a very "personal slant" against Mr. Dennis.

She spoke out after Junior Minister Thaao Dill told the Senate that any criticisms of Mr. Dennis had "absolutely nothing to do with his office".

Sen. Dill said: "They have everything to with the individual behaviour of the Auditor General. The office of the Auditor General could not be more sacred.

"Just because the office is so sacred doesn't mean that every individual in the office will behave in such a sacrosanct manner."

Sen. Atherden said that as a chartered accountant previously responsible for audits she felt the need to remind people that the Auditor General had professional staff working for him and a responsibility to weigh up the evidence presented to him.

"He is a professional with requirements to the institute that he is responsible to," she said. "We are having such a personal slant given to this matter. I'm really concerned that such a personal slant is being given."

She said qualified audits had been given to many other organisations who took the criticism on the chin and implemented better controls and procedures.