The committee decision that stalled the Bank of Bermuda's bid to win Parliamentary approval for a waiver of the 60/40 ownership rule showed a lack of understanding by Bermuda's politicians.

The charge was levelled last night by investment businessman Robert Pires.

Mr. Pires, the president of Bermuda Investment Advisory Services, said: "That decision showed a lack of understanding with respect to economics, and what is required for Bermuda companies to be globally competitive.

"In one regard, Bermuda companies are restricted in terms of access to capital. But in another area, these companies are restricted in terms of access to labour. There are highly qualified Bermudians here, but there are three jobs for every qualified Bermudian.'' Mr. Pires believes that Government policy is in fact holding local companies back from reaching their full potential. That's why he has not recommended the purchase of shares of domestic companies for the last 18 months.

He said, "We need to have politicians who understand what local business needs in order to be globally competitive. Until we see that sort of understanding coming out of the political arena, BIAS is not recommending the purchase of local shares.'' Mr. Pires pointed out that his firm advertised locally to fill a position and no Bermudians responded. He said, "We're now in a position with Immigration where they are trying to make us hire somebody who is not qualified at all for the position. It is a marketing position, and they are trying to get us to hire somebody who has done no marketing.'' He also offered the case of a leading local institution, where the chief executive complained that it took him five months to get his senior operating officer through immigration.

"There seems to be,'' he said, "a political agenda that makes it more difficult for firms to get the required people to run their businesses, to compete not against other companies in Bermuda, but globally. Our firm has to compete with the Merrill Lynchs and the Charles Schwabs of this world. We have to have highly qualified people, otherwise, our clients are just going to call 800 numbers in New York, and we will lose that business. I don't think that the politicians understand that.'' Mr. Pires' firm does recommend the purchase of shares of exempted companies, such as the publicly-traded insurers and reinsurers. But, he argued, they had advantages that Bermuda companies do not. He said, "Government treats them very favourably. They are much more relaxed in regards to immigration policy.

Those companies also have easy access to overseas capital. They are not restricted by the 60/40 rule.

"These companies, with a good portion of Bermuda staff mixed in with expertise brought in from outside, have proven to be successful on a global basis. But they've also had tremendous support from Government.''