international business.

A new Exempted Partnerships Act revitalised legislation for offshore business partnerships at a time when such partnerships are "in vogue'' in international business, Parliamentary Secretary for Finance Sen. Wendell Hollis (UBP) said.

And a Stamp Duties Amendment Act would encourage another popular branch of finance, pension trusts, to set up here.

Sen. Hollis said exempted partnerships are often formed to conduct business of an international nature, involving various partners from different countries.

One partner may provide finance, for instance, while another may provide the engineering expertise and another the local knowledge.

The new act "modernised'' older partnership legislation, and it was written in consultation with the Bermuda International Business Association and others in the field. "The marketplace has shown and demonstrated what it requires for Bermuda to be competitive,'' Sen. Hollis said, "and this is the answer to the call.'' Opposition Senate Leader Sen. Alex Scott said the Progressive Labour Party supported legislation that will benefit international business. All Bermudians realised the benefits, he said.

"But I think as we develop the business, we should look at ways to draw not only more companies to the Island, but more Bermudians into the company business. I think we have to think more seriously in terms of training and re-training.'' While international business has grown over the last 20 years, he said, the numbers of Bermudians it employed had not increased. "That's not a complaint but an observation,'' he said.

He said there was "widespread ignorance of the industry'' and both the international companies and the people of Bermuda would benefit if this was changed.

Senate vice president Sen. Norma Astwood said it was often heard heard that Bermuda had a two-pronged economy of tourism and international business.

"These two economies link with each other very, very closely because the international business community is a reasonably mobile one in terms of its own personnel,'' she said. Such personnel tended to have high expectations of hospitality service, and how they were served needed to be looked at.

Another aspect that could be reviewed was how travelling business people could link up to overseas offices by computer. "We lag behind quite significantly in terms of of how our hotels make it possible for the use of personal computers in private rooms,''she said. Such facilities would encourage people to come here with their families.

Sen. Astwood added young Bermudians would be better able to enter international business if, through the help of Government, internships or pupilage-type programmes were set up. And Bermuda College could maybe hold summer courses to extend knowledge of the industry.

Sen. Hollis said the vast majority of Bermudians in the industry were in support services. "We must be somewhat careful in trying to suggest that Bermudians should be in a position to control and manage international businesses themselves.'' This was because the businesses were guests in the Country and operated from outside. If Bermudians tried to get control it might be perceived as a threat, he said.

One of the Island's main selling points to international business was its infrastructure. "We can provide the manpower to provide almost all the requirements that an international business requires,'' he said.

As a result law firms, accountancy firms, cleaning firms, construction firms, security firms and taxis all benefited.

On the Stamp Duties Amendment, Sen. Hollis there was a demand, particularly in Hong Kong, to set up pension trusts here. But at the moment they were deterred by having to pay stamp duty. "If we don't change the Act they won't come to Bermuda. If we do they will come to Bermuda, establish themselves here and Bermuda will benefit from the business that comes out of that.'' Sen. Scott said it seemed someone had been rushed into this matter.

International business had become a powerful lobby and this was probably an instance where the industry had almost instructed the Government.

As a result the Government was acting inconsistently with the two pillars of the economy. "While you are listening to the international business community and responding to them, when we get to tourism we find that Government doesn't respond that way. In the case of tourism the Government has raised the duty, raised the tax and raised the levy, and that tends to discourage business.'' Airport, departure and cruise ship taxes were examples, he said.

Sen. Jerome Dill (UBP) replied: "Listening to Sen. Scott we would get the impression that the Government is busily whipping around and doing away altogether with taxes on all international business while at the same time whipping around increasing taxes on all items to do with tourism. Nothing could be further from the truth.'' Relief for hotels being refurbished was one example of Government help for tourism, he said.

The Government was not being inconsistent. "The world is changing and international businesses as a choice don't have to come to Bermuda. If we don't move expeditiously and stay at the very cutting edge of international business we will lose out.'' Sen. Hollis added: "International business is a product of legislation. As a result we can change the incentives and the marketplace by changing the legislation.'' Tourism was a product of the innate natural beauty of the Country and the hospitality of its inhabitants, and although some legislation, like the Bermuda Development Plan, could affect it, this was not primarily the case.

"Government is working in both areas together.''