Bermuda.

For changes to companies law means that overseas firms based on the Island can now have 50 year leases instead of 21 years.

Finance Minister Grant Gibbons told the House of Assembly that 21-year leases were not long enough to allow firms to write off major improvements.

And he added: "This will also bring a sense of security to Bermudians employed by exempt companies -- which is something like two-thirds of all employees of these companies.'' But Shadow Finance Minister Eugene Cox said he was "concerned'' that removing restrictions would push up demand -- and rents as well.

Dr. Gibbons countered: "Some of these companies clearly have made a great contribution to Bermuda -- some of these companies would like to own property, but this is our birthright.

"What we are saying is we're prepared to extend these 21 year leases to 50 years.'' Other changes in the law introduced by the Companies Amendment (No. 2) Act would be enforced by the Bermuda Monetary Authority and other bodies.

Dr. Gibbons said: "Bermuda is very careful about who actually does business here.'' Other legal changes include a "streamlined'' incorporation system to allow firms to be set up quicker.

Dr. Gibbons said a firm can be legal in the Cayman Islands in 24-48 hours, but at present the same process takes two weeks in Bermuda.

He added: "We're trying to make sure the whole incorporation process is streamlined.'' Dr. Gibbons said other jurisidictions did not require Ministerial consent or advertising of incorporation.

The new law axes advertising and Ministerial consent requirements for "the continuance in Bermuda of a company incorporated outside Bermuda.'' Ministerial consent for an exempt company to discontinue operations on the Island and set up somewhere else will also no longer be required.

But firms will be required to prove they can meet any financial obligations in Bermuda before leaving.

Also out is Ministerial permission for registration of a company. Instead, a new category of restricted businesses is introduced which do require permission.

Restricted businesses cover the financial services sector, including banking, deposit-taking, trust companies and insurance, as well as securities dealing.

Dr. Gibbons stressed that safeguards would still be in place to "make sure we only have people here we want here.'' House coverage continued on Friday