In the third in a series on the coming election and the way it will affect the economy, Mairi Mallon investigates how the May 24 election will affect the international business community.

The international business sector has long been recognised as one on the main cogs that runs Bermuda. A few years ago it overtook tourism as the main money earner for the Island.

It may not employ as many Bermudians as retail, but the well-paid expats that come in to work for international companies spend their dollars here - and many a mortgage has been paid off from the cash generated by these workers.

Everyone from law firms and accounting firms to gardeners and cleaners depend on their dollars to keep them in business.Bermudians are also given world-class opportunities to work in the companies, who promote hiring Bermudians with a fervour.

But international business suffers from a tarnished image in the company and are seen by many as fat-cats, and their workers seen as stealing jobs, school places and houses from Bermudians, pushing the Island's infrastructure to its limits. Five years ago, when the PLP came into power, the prophets of doom said that the relationship between big-business and a new labour government was not going to work.

The critics have been proved wrong, but there are still very fundamental problems faced by international businesses working in Bermuda.

David Ezekiel, head of the Association of Bermuda International Companies, which represents the interests of this sector, said that whatever party is in power, it needs to make sure Bermuda's reputation in kept squeaky clean.

"We want a good clean battle for the election," said Mr. Ezekiel. "One which will continue to enhance our reputation as a well ordered domicile."

And he said it was important for whichever government of the day to go to bat for Bermuda - especially when attacked by foreign press.

"One of the main issues for us is to have a Government that is proactive which will enhance and protect the Island in all areas. And that includes fighting adverse publicity on corporate inversions or any of the recent anecdotal stuff the press pick up. You don't want to get in the ring with everyone, but you want to get the message out."

But when it comes to international business, the main bear-bug for them is work permits.

"The whole area of work permits is critical," said Mr. Ezekiel. "And it is critical in may different facets. Obviously speed is the main factor."

He said that while the Department of Immigration were processing new work permits faster, what his members were finding was that renewals were getting delayed.

He added: "Renewals cause as much anxiety as a new work permit." And he said that longer work permits may help this matter.

"Also very soon we will be bumping up against the six year work permit rule and as that date gets closer, the whole implementation of that rule becomes an issue."

Mr. Ezekiel added that there was a whole host of unknowns about the rule and the impending deadline with the issue of what is a key worker is still unclear.

"How it is going to be implemented will affect the career decisions of people at all stages of their careers," he said, adding that it was already affecting work-permit holders who were deciding to up and leave before having a decision made for them."

Mr. Ezekiel also said that it was important to keep the cost of doing business in Bermuda down. And he said that the costs had remained static for a few years following a hike in payroll tax - and this was something that was good for his sector.

The issue of overtime in the Employment Act does not affect international business, as this sector is filled with professionals, but he said for the good of Bermuda these issues needed to be sorted out.

Mr. Ezekiel also said that the sector had to work on its image within the community.

"Quite often we have to get the message across that our impact on the island is a good one," he added. "We have to counter the anecdotal impact that we have - especially with issues such as housing and schools."

And he said some businesses were in the early stages of making plans for housing for their workers to help alleviate the housing crunch on the island.

"There is an opportunity to take the pressure off this market," he said.