THE Minister of Finance this week defended the Government's stance on term limits for international business employees, calling its current policies "co-operative yet judicious".

Paula Cox responded to criticism from Shadow Minister of Finance Bob Richards, who told the Mid-Ocean News last week that Government's six-year work permit limits "strike at the heart of intellectual capital".

Mr. Richards blamed the Progressive Labour Party for having "fostered a dangerous 'us' and 'them' perception of Bermudians versus foreign workers".

Ms Cox hit back at these allegations, telling the Mid-Ocean News exclusively that the island's international businesses "have an identity of interest with the Government and people of Bermuda".

She said foreign workers had "no need" to be concerned that their work permit could be revoked after six years on the island – provided an employer made a "proper application" to Government for exemption.

However, she added that the current policy "places primacy on legitimate career aspirations of Bermudians being met".

"There is no need for an employer or an employee to be concerned with their long-term prospects for working in Bermuda if they are a key component to the business," she said.

"The challenge is in understanding the operation of the term limit policy. As a result there are more misconceptions than reality. The Department of Immigration has routinely indicated in stakeholder meetings with the international business sector that a waiver or exemption from term limits is given when a proper application is made by an employer for a key employee.

"For example, an IT manager or middle manager, who may have a team of Bermudian IT employees, has no need to move those jobs off-shore if the manager has made a proper application to the Immigration Department that the non-Bermudian IT manager is key.

"The bottom-line is that there is no need for an employer or an employee to hold their breath as to their long-term prospects for working in Bermuda if they are key to the business. That is flexibility with fairness."

In last week's Mid-Ocean News, Mr. Richards hit out against the Government for using xenophobic rhetoric against international workers to political ends.

"Foreign business leaders create jobs for Bermudians," he said.

"They're not taking away jobs, business and income from Bermudians."

Ms Cox maintains that the Government indeed acknowledges the need for foreign workers in Bermuda in order for the island to remain competitive against other jurisdictions.

"Bermuda's approach has been one that recognises the competitive edge and need to have specialist talent," she said.

"The Government authorities have also acknowledged that we have more jobs than people and so our immigration model is one that places primacy on legitimate career aspirations of Bermudians being met.

"At the same time we acknowledge that for a dynamic, thriving international business sector we need to ensure we provide the means for business to have access to diverse talent so that we maintain to have a competitive business environment."

Ms Cox downplayed growing concerns about Bermuda's future as a business centre when US President-elect Barack Obama assumes office next month, claiming that "the issues are over US taxation, not Bermuda".

The Stop Tax Haven Abuse Act, first introduced in 2007, is expected to pass next year in an overwhelmingly Democrat-controlled Congress. Mr. Obama was one of the original bill's co-sponsors, and he has been vocal in his support of measures to close 'tax loopholes'.

Still, Ms Cox remains "confident" that Bermuda's financial model will survive even scrutiny from the world's highest office.

"It is unlikely that tax changes will be geared specifically to Bermuda but rather be aimed at offshore jurisdictions," she said.

"I am confident that despite the current global economic challenges, companies will continue to locate in Bermuda because as a jurisdiction we are a magnet for credible, innovative business coupled with a strong regulatory framework.

"That is our footprint, and it typifies the Bermuda model and market as a premier international financial centre."