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Comments about ‘unfriendly’ Bermuda resonate with others

Opposition Leader Kim Swan

Charges that Bermuda is growing unfriendly to international business have been echoed by Opposition politicians and others.The statements followed a call from Peter Durhager, executive vice president of Renaissance Re and co-chair of the economic think tank Bermuda First, that Bermuda must reverse perceptions that it is “closed for business”.United Bermuda Party (UBP) leader Kim Swan, who also co-chairs for Bermuda First, said the Opposition was in agreement: “Mr Durhager comments on a painful truth.”And Shadow Finance Minister Bob Richards said Bermuda had become “uncompetitive in the 21st century”.He said the Island “must strive to eliminate unnecessary red tape associated with all sectors: international business and tourism and tourism development. This red tape costs our customers extra time and money.“In addition to our competition being able to execute cheaper and more quickly, we agree that the traditional welcoming friendly attitude of Bermudians towards customers, of all types, is not what it used to be. This is hurting our primary sectors. This welcoming factor needs to flow not just from individuals but through our institutions as well. They should feel that their business is appreciated.”Bermuda Democratic Alliance (BDA) chairman Michael Fahy also concurred.“The writing has been on the wall for some time that Bermuda isn’t seen as a business friendly environment. The recent layoffs by two top firms in the areas of incorporation and corporate law are an indication of the lack of work being done in Bermuda in terms of new business.”Mr Fahy said Bermudians needed to recognise international business as the driving force of the economy.“Sadly, sometimes it’s down to one CEO’s opinion and how he’s treated when he arrives and goes through Customs. We are over reliant on international business and we have to do everything we can to keep it, even if it means getting rid of work permit term limits. Just the fact that these guys have to worry about it makes them want to go somewhere else.”Among other improvements, Mr Durhager had recommended improving Customs procedure at LF Wade International Airport.Mr Fahy said: “We also need to reduce the payroll tax. A lot of CEOs call it a complexity tax. It’s a built-in tax that’s unfriendly to business, and business leaders were told about it at the same time as everybody else. We need to offer incentives to big companies and CEOs, give them long-term work permit waivers, and encourage them to stick around here. Guest workers shouldn’t be made to feel unwelcome. We need to welcome them with open arms, because we’re becoming a one-pillar economy.”In a statement from the Bermuda Chamber of Commerce, executive director Diane Gordon said the Chamber “commends Mr Durhager for his frank and forthright comments on the current status of our economy, particularly as it relates to international business needs.”She said Bermuda was “at a watershed” and needed to reinvent itself.“The Chamber supports many of the proposed positions suggested by Mr Durhager”, she said, including reviewing the “60/40 rule” on non-exempt company ownership; more flexible work permit conditions, and encouraging “key executives” to domicile in Bermuda by relaxing immigration policy.She said: “Without external economic stimulus from international business and tourism, we expect further economic difficulty for the local sector, which will continue to affect the number of jobs businesses can afford to keep. These are businesses owned by Bermudians and jobs predominantly staffed by Bermudians that are at continued risk.”lUseful websites: www.ubp.bm, www.thealliance.bm.