PLP LEADER Perry Christie said he will sue the FNM for defamation over the allegations that he is a consultant for a company that hopes to drill for oil in the Bahamas.

In a statement issued yesterday, Mr Christie said he has no relationship with the Bahamas Petroleum Company, and accused the FNM of suggesting otherwise because they are in a state of panic as the election draws near.

Mr Christie said he has taken offence to "a last-minute television ad, filled with last-minute lies about oil drilling and about me.

"It is defamatory and I have instructed my attorneys to file suit against those who are responsible."

The FNM claimed Mr Christie was - and still is - a consultant for BPC through Davis & Co, the law firm of PLP leader Philip "Brave" Davis, which represents the oil company along with another law firm.

It was also suggested that although there is a moratorium on oil exploration because of environmental concerns, BPC may have a better chance of being allowed to drill if the PLP wins the election.

But according to Mr Christie, there will be no oil drilling in the Bahamas under a PLP government unless there is public support for such a step.

"It will not be a matter of only persuading my government or only persuading the top safety and environmental experts - oil drilling will only happen if the people of the Bahamas want it to happen. We are on the record in support of a national referendum," he said.

"We are not the FNM, who does not listen to the people of the Bahamas, does not consult with the people of the Bahamas, and does not care what the people of the Bahamas want or think.

"That is how you get Ingraham selling BTC to foreigners even though it was clear to everyone in the Bahamas that the people were against it.

"We have the opposite approach - we bring people together and we only move forward when we have public support."

Mr Christie said both the PLP and the FNM issued licenses for oil exploration, but the difference is that when the PLP granted licenses, they imposed stringent environmental and safety conditions, and insisted on "reputable companies" whose principals had a strong record of successful exploration.

"In fact, negotiations with BPC took several years to conclude, precisely because of my government's insistence on imposing unprecedented environmental obligations.

"On the other hand, when the FNM granted licenses they did no such thing - zero environmental conditions were imposed and in most cases the principals of the licensed companies had little or no experience in oil exploration," Mr Christie said.

He added: "I do not have any current consulting or legal arrangement with BPC, nor will I have any such relationship with them when I am Prime Minister.

"My consultancy arrangements with Davis & Co, under which I had provided consultancy services to various clients of that firm, including BPC, were completely terminated well before the fake controversy over BPC even started.

"At no time have I ever acted improperly in relation to any matter concerning BPC and at no time have I ever received any money from BPC.

"They have always been well aware of my position on oil drilling, namely that no drilling would ever be allowed under an administration headed by me without the highest possible environmental and safety precautions and even then only if the Bahamian people supported it," he said.