Bermuda could be losing potential foreign investment because of fears over the employment climate on the Island, it has been claimed.

Proposed new work permit restrictions and CURE investigations into the racial mix in the workplace, together with other factors, have combined to scare off would-be developers and financiers, it has been alleged.

And one north American developer has warned that existing Island businesses could be quietly growing their concerns elsewhere in response to possible tighter constraints on expatriate workers.

The developer, who wished to remain anonymous, said: "Bermuda will not even realise the business it is going to lose.

"You don't need to hear about restrictive work permits, it is just starting to slide and slide.

"The investment world now avoids risks, Bermuda is risky, always has been but it is even more so now. Just because it is the thought of investing $150 million and not knowing whether your senior people can watch over it.'' Other businessmen, who talked to the Royal Gazette on condition of anonymity, agreed that any possible socialist workplace legislation could scare off investors.

The businessmen said news of possible work permit changes and difficulties some firms were experiencing were filtering fast overseas, possibly causing companies to look for other opportunities where foreign staffing will not be an issue.

The developer claimed on-Island businesses were also starting to look elsewhere.

"I know officials of corporations who are scared, but quietly saying "grow business offshore''.

"It is the signal that it is not "steady as she goes'', money can move in moments.'' An on-Island executive said bosses overseas would be concerned over investing millions of dollars, particularly in a hotel, when there were concerns over the "employment climate''.

He said: "People will just go away, it is too dangerous to put in millions of dollars of service-orientated capital if you can't deliver the goods.

"If they were thinking of borrowing money and this was the climate of operation, a lot of people would say "nothing personal but I don't think so''.

"Socialist governments go for this type of legislation, it is a turn-off for industry. Capital will go where it is welcome, if there is a feeling there is hostility, it will simply quietly back away.'' And another Bermuda-based developer said the ripples being felt outside of Bermuda would not signal the death knell for new business but added that it could hit expansion plans.

He said CURE should have been discussed more and added that many of the current problems had come about because of a lack of understanding of the importance of international business within the economy.

"What really scares me and what is the real issue is the fact there are a number of people, due to whatever reason, do not have a clue what international business actually does for this economy,'' he said.

"There is no way tourism is ever going to be revitalised unless executives are comfortable investing money here.'' He said international business was aware of its obligations to the Island but called upon the Government to take the lead in educating people on the contribution of overseas companies.

"We are all prepared to work together. This Government has shown they are willing to work together with all the parties involved.'' IMMIGRATION IMM DISCRIMINATION DIS