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Cumulative effect

of international business about recent Government initiatives.Those initiatives are: Proposals to limit to nine years the length of time work permit holders in certain categories can remain on the Island; Commission for Unity and Racial Equality regulations which,

of international business about recent Government initiatives.

Those initiatives are: Proposals to limit to nine years the length of time work permit holders in certain categories can remain on the Island; Commission for Unity and Racial Equality regulations which, if approved by the Senate, will require companies to file returns on the racial make-up of their staffs; and Changes in the payroll tax which now require international company employees to pay payroll tax on actual salaries (capped at $250,000) instead of a notional $75,000 salary.

Taken in isolation, none of these initiatives may seem terribly threatening and in some ways, they are laudable.

The majority of work permit holders in Bermuda do not remain on the Island for as long as nine years. The Government also needs to avoid the moral challenges posed during the last recession when people who had been here for as long as 20 years were forced to leave. Government doubtless wishes to avoid the problem of "creeping'' job requirements caused by companies renewing work permits for employees who add experience and qualifications as they go along.

All of those motives are understandable. But they also need to be balanced against the needs of companies to have the best possible employees to make their businesses successful. Experience in the Bermuda insurance market -- and it is arguably one of the three most important markets in the world now -- cannot be recreated every six years.

The CURE Regulations can be seen as a way of giving Government solid information on opportunities and whether they are being offered equitably to people of all races.

It may well be that the statistics will show that they are, and progress is even. But these returns can also be seen as an invasion of privacy and there is a risk that race will become the sole criteria for hiring.

The payroll tax changes are being made in part to demonstrate to international tax authorities that Bermuda does not offer a preferential tax system to exempted companies.

This would be more convincing if, as the Opposition has suggested, payroll taxes were levied on local companies with the same cap of $250,000. However, Government's reasoning is basically sound; better to levy some taxes and keep business here than to become a pariah state and lose it all.

Taken individually each of the above measures has drawbacks, but can also be fine-tuned and defended. Taken together, coming one after another, international companies and expatriates are being forced to ask themselves if they are wanted in Bermuda.

And if they feel unwanted, then it is just human nature to start looking elsewhere. When they start to look, they may find other jurisdictions are more appealing.

Well-meaning measures and occasional speeches stating that Government understands the need for international business are all very well.

Lack of consultation at the highest level, a range of threats from abroad (often from countries or businesses envious of Bermuda's success) and mixed messages locally create a climate where businesses feel unwelcome and uncertain -- and that cannot be what Government intends.