Bermuda’s international business community was a topic of discussion in the Senate yesterday, with Opposition Senator Michael Fahy calling on Government to restore the trust with the reinsurance industry.As reported by The Royal Gazette earlier this month, three insurance bosses spoke out saying that the payroll tax increase of two years ago caused Bermuda jobs to be lost and a lack of consultation caused a “rupture of trust” between Government and the industry.“They [insurance industry] all say that Government policy needs to be more flexible in terms of immigration, ensuring a more friendly business environment and growing business. That is simply not happening,” said Mr Fahy in a Motion to Adjourn yesterday.“And before the Government says — yes it is and we are scaremongering let’s remember the comments from the head of the XL Group — Mike McGavick and also David Cash of Endurance — who said that the tax increase imposed by the Government a couple of years ago agreed that damage caused by the tax increase had lasted longer than the one year it was in effect before being rolled back.“In fact, Mr McGavick went further — he said that the insurance industry had been assured of an opportunity for discussion before any increase in employment tax but this had not occurred in 2010 — causing trust to be damaged. In fact, industry experts said the rise would lead to a silent exodus of jobs — and this is what happened. That has nothing to do with a global recession.”Premier Paula Cox was approached for comment but was travelling back from London where she was leading a delegation to expand Islamic finance opportunities and strategic partnerships in tourism development projects.During his speech, Mr Fahy questioned if the Government had consulted the insurance industry on the tax increase.“I want to know if the Government will admit they failed to consult despite saying they would — presumably Mr McGavick and Mr Cash are telling the truth — let’s hear from Government,” he said.In The Royal Gazette story on July 4, Mr McGavick also said that efforts were now being made to repair the damage.“I need to be clear — the Government is clearly trying to recover, has been seeking and taking counsel,” Mr McGavick said. “That is very much appreciated.“The reality is that not very far from now, we’re headed into an election. This always creates a more difficult time for governing and an uncertain time for those who are taxed and regulated. So I don’t really expect that during this period, very bold things can be done and that’s unfortunate because the clock continues to tick on this.”In response, Mr Fahy told his Senate colleagues he believes that insurance bosses are waiting for an election.“They are waiting for the outcome of the election because they don’t have confidence in Bermuda as an international jurisdiction.”