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Foreigners cash in as locals ignore construction industry

Alex DeCouto, president of the Construction Association of Bermuda, said that while genuine efforts had been made to encourage youngsters into the field, technical, managerial and trades positions were "dominated" by expatriates because local interest was simply not there.

"We have recently been doing more to attract young Bermudians, and it does appear to be paying off," he said.

"Four years ago we offered a $2,500 scholarship and entertained maybe four or five applications for community college students. We now offer a $15,000 scholarship and attract between ten and 12 applicants for university courses.

"However, I know I speak for most industries when I say that not enough Bermudians are considering a career in construction. Many technical, managerial and trades positions are still dominated by imported expertise. Speaking as a ? fairly ? young Bermudian myself, I can tell you that opportunities abound."

The Bermuda Industrial Union recently accused construction firms of hiring foreigners in favour of local workers, claiming they were blatantly flaunting the law while Bermudians sat unemployed.

The charge led Government to issue a crackdown on companies with an unacceptable number of overseas workers.

"The Department of Immigration is aware of complaints from Bermudians and Bermuda companies that there are companies that are bringing in cheap labour at the expense of Bermudians," Robert Horton, Permanent Secretary to the Minister of Labour and Home Affairs, said at the time.

"We are concerned that this practice disadvantages not only Bermudians looking for work, but also those Bermudian companies that hire mainly Bermudian staff.

"The offending companies have a competitive advantage by bringing in cheap labour and are, therefore, able to underbid for jobs because they do not have to invest time and money in recruitment and development."

In order to regulate the offence, Mr. Horton said the Department of Immigration would maintain a list of companies which applied for work permits and deny those requests should there be a disproportionate number of foreigners compared to local staff.

The Department of Statistics' most recent Employment Survey revealed the number of jobs on the island had risen by more than 500, with the increase accredited to the island's "booming construction" works.

As reported in the annual survey, the construction industry contributed 266 new jobs, with $300 million of building activity between the third quarter of 2004 and the second quarter of 2005.

Asked yesterday whether there was any sign that the construction boom might be slowing down, Mr. DeCouto insisted a decline would occur only if the island fell into recession.

"I think using the term 'boom' is inaccurate and suggests that work is or has been expanding at an unmitigated rate," he explained.

"Construction work in Bermuda has been very steady over the last decade. With an economy as small as ours, a big project like a Berkeley School or ACE/XL project can have a significant effect on total volume, but otherwise employment rates and the like have been very consistent.

"But to answer your question, I do not see a significant downturn in the near future. Confidence in Bermuda remains high. Construction is an economic indicator and as such, if it does take a downturn, it is because our economy generally is in recession."

The Employment Survey also reported that for the first time in recorded history, the international sector beat out Government as Bermuda's largest employer.

Asked whether he would recommend the construction industry and what long-term prospects it offered with Bermuda's land limitations, Mr. DeCouto said: "Certainly I would recommend it, and do so with significant effort through the Construction Association and our scholarship programme.

"Career paths can carry you through technically demanding careers like surveying and engineering, hands-on trade skills like fine millwork and mechanical technicians, and through to high-paying management positions like superintendents and project managers.

"Development can continue indefinitely. Consider this: What was there before ACE/XL? Southside? The Waterfront at PW's? Loughlands? Redevelopment constitutes the largest portion of 'new' construction on the island. Very little is actually on true virgin land. Development will always provide a function in maximising land-use efficiently and effectively, as determined in the future, not now. Buildings are not built to last forever, and neither are they designed to. We should fully expect to continue to see Bermuda evolve as our society does."

He insisted a Government promise to develop a sustainable development plan posed no threat to the industry, that many stakeholders relished the idea of green building.

"To the contrary, the industry sees this as an opportunity to co-ordinate efforts at many levels to make our community more effective. Advanced techniques in green building and development planning, which have long ago been catching on in other jurisdictions may now be brought to the fore by Government and other developers."