An initiative offering a tax break to employers that hire locals has resulted in 420 new Bermudian hires over six months, according to Finance Minister Bob Richards.

However, today’s announcement swiftly came under fire from the Opposition Progressive Labour Party, which said the hirings did not equate to the creation of new jobs.

Mr Richards said the hires, made between April 1 and September 30, had been reported in connection with the two-year “tax holiday” given under the Payroll Tax Amendment Act, 2013.

“Clearly the stimulative measures taken by this Government to encourage and promote the employment of Bermudians is bearing fruit,” he added.

Under the law, a Bermudian worker must be jobless for at least three months to qualify for the exemption.

Mr Richards said he was confident the measure would result in employment for “many more” over the next year-and-a-half. The Act, approved by the Senate in March, came into effect at the start of April.

Shadow Finance Minister David Burt said that the figures needed to be put into perspective.

“Many of these hires are to fill vacancies caused by retirement or regular turnover in the job market,” he said, citing terminations and resignations.

Employment figures released in August showed that many of the jobs were seasonal or temporary positions in the tourism-related sphere, Mr Burt added.

“Additionally, it must be pointed out that tourism-related industries — hotels, retail, restaurants, bars — have all enjoyed payroll tax breaks prior to this measure being introduced,” the PLP MP said. “Hiring in these areas provide no additional tax benefit to the employer and according to the August figures, these industries make up 45 percent of the new claims.”

He called for “a complete breakdown of the figures so we can see the specific industries that have benefited”, and said Mr Richards should reveal how many new jobs had been generated under the tax break.

Mr Burt charged that the figures meant little to workers who he said had lost their jobs because of Government’s “inaction on a jobs plan for Bermudians”.