The Chief Minister says the Island's reputation on the international stage could be damaged by the case of a private landlord in Ramsey who's refused to rent a house to a same-sex couple.
Allan Bell says the Island has been derided in the past over state intolerance to homosexuality, which was only decriminalised in the early 1990s.
He now fears a fresh backlash from hostile politicians and media over the refusal by an independent Methodist minister to rent a property to a lesbian couple.
Mr Bell says much has been done over two decades to increase the rights of minorities - but the Island's image could be tainted once again:
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