Mr. President, there has been some discussion recently regarding the implementation of Work Permit Term Limits and the Government’s current position on same. There seems to be a general concern amongst many about the term limit policy, specifically:

* is it necessary?

* is the policy being applied consistently?

* and whether the effects of the policy are damaging to the business community.

Mr. President, there have been some groups that have made comments which are particularly worrying to me; one group stated that: “the implementation of the key employee term limit extensions and exemptions is not being conducted in a consistent manner making it difficult for employers to manage the concept”; another group goes further to state that: “the policy is destabilising to Bermuda” making “recruiting far more difficult” and “contributes to a sense of uncertainty for senior staff”. I take those concerns seriously, and, as a result, I have decided to write to employers to clarify the position on term limits and explain the process by which applications are reviewed. Those letters will be in the post this week.

Mr. President, let me assure you and the public at large that I, as the Minister responsible for Immigration, would not do anything that would threaten the health of Bermuda’s buoyant economy. But I am painfully aware that perceptions can be as damaging as the reality, and it is my duty to ensure that I provide the information that will dispel any misinformation that might cause uncertainty and discomfort. It is indeed critical to calm concerns when we are now operating in a global environment affected by an economic downturn.

I would, however, be remiss, Mr. President, if I did not remind why this policy was first introduced. Most employers mistakenly believe that the policy was introduced to make more jobs available for Bermudians. While I am charged with ensuring that qualified Bermudians at all levels are given the opportunity to reach their highest potential, this is not the underlying principal of this policy. The term limit policy was introduced to keep a promise to Bermudians. While this Government made the unprecedented decision to give permanent residence, and in some cases, Bermudian status to persons who had resided in Bermuda continuously since 1st August 1989, at the same time, we gave an undertaking to Bermudians that we would not continue to approve work permits indefinitely, thereby creating further groups of long-term residents who would claim to have an expectation that they could ultimately acquire permanent residence in this country.

Many have argued that the term limit policy is flawed because non-Bermudians should no longer have such an expectation; however, I must remind you that this was also true in 1994 when the ability to qualify for discretionary status was repealed. This action did not prevent the hue and cry of long-term residents who claimed, even before the first PLP Government was elected in 1998, that, because their work permits were simply rolled over from year to year, they should be granted more long-term security. We simply cannot allow this situation to be repeated.

Mr. President, I have heard the concerns that the term limit policy has been applied inconsistently, especially since I became the Minister responsible for Immigration. I want to assure you that nothing could be further from the truth. I have taken great pains to ensure that we are dealing with applications in the same categories within each industry consistently. I have ensured that once a decision is made about a job category, then the rationale is applied to all jobs in the same category and industry. However, sometimes, I have to review applications on an individual basis where I believe that a specific employer may need additional time to replace the relevant work permit holder or that employer finds himself or herself in a situation where it is critical to have a specific employee complete a certain project. I would hope that this is not viewed as inconsistency but as flexibility which is available to any employer who can make a cogent case as to why he or she requires additional time.

Mr. President, it should be remembered that this policy was only implemented in April 2001 so that its effect has only been felt since April 2007. A number of concessions were made because of the tremendous backlog created by employers who waited until their employees’ term limit had expired before applying for waivers from and extension to term limits. In particular, a year’s extension was given to employers who had work permit holders whose term limits expired between April 1 and September 30, 2007. Even after September, a number of employers were given an additional year to find replacement staff. Now that we no longer have a backlog of applications, such concessions are no longer required.

Mr. President, I must emphasise that I have not amended the policy nor have I amended the published categories (copy attached). Government recognises that companies must have continuity and stability, therefore waivers have been granted to persons who are in senior management and are in the categories that have been identified.

However, I have to balance these approvals with ensuring that qualified Bermudians at all levels are given the opportunity to reach their highest potential and that glass ceilings are not created by the granting of waivers from term limits.

Mr. President, this Government recognises that we will never be able to produce enough Bermudians to fill every job in Bermuda and as such will have to continue to approve work permits for guest workers.

This policy is not designed to threaten business or to make it more difficult and I refute completely the suggestion that it does. I note the recent decision of one of our competitors, the often-touted Cayman Islands, that they would not amend their 7-year Term Limit legislation. I note also a recent article in the Economist regarding similar concerns in the Gulf Arab states and their exploration of policies to limit and control foreign workers.

Mr. President, it is also a statistical fact that at least 50% of guest workers voluntarily depart Bermuda after 4 years.

Mr. President, so where are we now and what are the next steps?

I have met with all the alphabet employer groups and gave them an undertaking in January 2008 that we would review the policy based on new information that they provided, most recently a Bermuda Employers Council commissioned report on Bermuda’s National Workforce. Additionally, we sought an opinion from the Attorney General’s Chambers. All of that information comprised the review which we anticipate concluding by month’s end.

Term Limits are not a Ministerial decision but a Government one – so any change in the policy requires Cabinet approval. I expect to report the Ministry position to Cabinet early in October and then on an association by association basis consult with stakeholders.

I anticipate providing a further report on this matter when Parliament returns in November.

Mr. President, I cannot stress enough Government’s willingness to work with business in partnership - but that partnership cannot be via industry ultimatums to Government through the media. We do not presume to tell businesses how to manage and it is insulting for them to tell Government how to govern.

Thank you, Mr. President.