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Premier Ewart Brown: Forget Cynics, Bermuda Is Still Open for Business(BestWire Services Via Thomson Dialog NewsEdge) The premier of Bermuda, Ewart Brown, doesn?t take lightly criticisms that some of his policies, compared to previous administrations, have been hostile to the island?s international business community. If that?s the case, Brown argues, why are companies still moving to Bermuda? Why have investment firm Invesco and Lloyd?s insurer Hardy Underwriting relocated to the island in recent months, he asks. The premier says all of that goes to show criticisms are politically motivated. "I haven?t been hostile and I haven?t been angry. I have just taken some positions that some people in the community don?t agree with," he said in an interview. "Those people wanted me out of the government and they wanted me to lose the election. I did not lose, and so now those people have to observe how democracy works." Last December, following a highly-contentious election, Brown led the Progressive Labour Party to a third term in power. The party emphasized social transformation as its platform during the campaign, specifically the development of social services such as free day care for working mothers and a health insurance program. Foreign business was not a central issue in the campaign, but Brown said the party made it clear the new administration will continue to provide a friendly business environment. After all, in the 10 years the PLP has been in power, there have been nearly 3,000 additional international companies established in Bermuda, he said. The PLP has presided over explosive growth in Bermuda?s economy, and it?s hard to argue against that, experts say. But what critics of the current administration have pointed to are more recent policies that some claim would make it difficult for foreign business to operate. Two of the most controversial have been new work permit rules that took effect last year and an affirmative action-type proposal designed to urge employers to hire more Bermudans. Brad Kading, president and executive director of Association of Bermuda Insurers and Reinsurers, said the PLP in its first year of power created limits on the length of time a guest worker can be in Bermuda. It?s the so-called six-year term limit, with exceptions for key employees. The goal of that, from the Bermuda government?s perspective, is to make sure immigrant workers do not end up becoming permanent residents on the island. ?This is the country with the world?s leading per capita gross domestic product," said Kading. "It has one of the five highest standards of living in the world. And its one of the most densely populated places in the world. So there?s recognition that Bermuda could become overrun by people seeking permanent resident status here.? Currently, there are an estimated 50,000 Bermudans and 10,000 expatriates living on the island. Last year, the chief criticism was that the immigration department was overwhelmed by backlogs created by inadequate processing staff and long-term delays in processing both the work permit applications and applications of people who were at the six-year limit and wanted to be reconsidered as key employees. Brown said the processing delays have largely been resolved. ?We are still not as efficient in that area of immigration as we?d like to be, but yes things have improved dramatically,? he said. Even more controversial is the Workforce Equity Act, the PLP?s proposal to attach a Bermudan to the work permit of every expatriate worker. The proposal would require employers to have a Bermudan trained to replace every expatriate worker on a work permit, creating a clear path for the Bermudan to replace the expatriate worker should that worker be subject to the six-year term limit. Brown said while some like to describe the Workforce Equity Act as an affirmative action program, he sees it as an economic compensatory program. ?Bermuda has a history of inequity in the workplace with respect to Black Bermudans, and one of the objectives of this government is to compensate for that, to fix that,? he said. The premier said that proposal is only under discussion and that he won?t speculate on what the actual language would be or how it would be enforced. Some businesses already have expressed concerns about it. ABIR, for example, filed a letter expressing a host of concerns. "Our approach was we have laws on the books in Bermuda, and if those laws need to be enforced, let?s enforce them. Let?s look at what the problems are and address them,? said Kading. Kading said ABIR?s membership, consisting of 23 insurance and reinsurance companies, employ 1,700 people in Bermuda, 63% of whom are Bermudans. ?So, my membership has an excellent track record of hiring Bermudans. We?re color blind in the talent we seek,? he said. Whatever happens to this and other proposals, Kading said it's not going to drive insurers away from Bermuda as some cynics have speculated. Like the premier, he believes reports of tensions between the business community and the Bermuda government are way overblown. Politics is part of it, but Kading blames competitive domiciles -- the Caymans, Ireland, United Kingdom, Singapore and Dubai -- who are all too eager to dethrone Bermuda. (By David Dankwa, senior associate editor, BestWeek: [email protected]) Copyright ? 2008 A.M. Best Company, Inc. |