Recently there have also been corporate landholding amendments, and some more work permit proposals are to be presented by government. They are looking at commercial citizenship and status and permanent residents certificates proposals as well, all of which should lend some level of comfort to our business community.
Collier: You’ve got a team working there as a core of government, that meets every week to get things done. There is a lot of talent in this country in all sectors that are willing to work with the government, and to help them. I have said publicly that we need foreign investment. The country doesn’t have a balance sheet that’s going to turn the country around at the speed in which we need to do it—foreign investment will help that.
Bell: There is one low hanging fruit I’ll throw out there that I think the government could pick, which would immediately make it more affordable to employ more people in Bermuda—to waive payroll tax. One of the things that Bermuda, like every country in the world, is experiencing right now, is not only the challenge of the global economy but the fact that countries are competing to provide workers, and technology is enabling that to happen.
We want our people to be the ones that get the work from our companies, which has always been our model, we’ve done it very well and that’s why we have the level of intellectual capital that we have on the ground. It’s a different competitive space now though. Other countries have just as capable workforces so we need to be able to make employing the Bermudian work force as attractive as possible.
For example, it’s always an advantage for an employer to walk down the hall and speak to a person rather than do it over a video conference link or call. From my perspective, that’s a low hanging fruit: how can we make it easier for employers to do what they want, which is employ people right here who are physically proximate and build those direct and personal relations.
So if we can take away or reduce direct cost to the employer which might be discouraging them from employing that person in Bermuda we may create jobs.
Webber: There are several industries or sectors in Bermuda that do get payroll tax waivers and the government is currently looking at the construction sector in particular for new construction projects that employ Bermudians and that get large scale businesses up and running. It has been brought to our attention that there’s a high labour cost, and that something can be done to help kick-start large infrastructure projects.
The economic development committee I sit on is seriously considering such proposals and what you will find is as it becomes successful in more and more sectors, there’s quite a strong likelihood that that success will become spread across other sections of the economy.
Smatt: It’s about getting the mix right between the long game and the short game. We must leverage our size and concentration of expertise, both of which allow us to be nimble, but while adapting quickly to change in the short term we must remain focused on our long-term strategy and ensure that we preserve our reputation.
Wojciechowski: We do a good job of getting that mix right because it’s a very domestic economic issue, and it’s one that certainly is brought up a lot. As Michael said earlier we have a very difficult public sector financial challenge ahead of us. So getting that balance right and being able to provide resources where they’re needed domestically and encouraging economic growth will be key.
We have to continue to fortify the core value of the infrastructure of Bermuda and get that known externally. One of the benefits of a small jurisdiction is a collaborative approach between industry and the government. Here at the BSX we make sure our policies and approach are as good as they can be, dovetailing with the approach of the jurisdiction in terms of our regulatory tone as well the clients that we’re serving.
As Michael said, what’s going to really help us accelerate the recovery is foreign direct investment. A vibrant domestic economy is likewise very important for recovery and growth.
Examples of this collaborative approach include a relaxation of one of our archaic laws, 60:40, which basically choked capital formation for some of our domestic companies. That change was a progressive step in terms of embracing foreign direct investment and the message we’re hearing from government is of an increased openness towards new foreign direct investment.
I hope we can articulate the message that Bermuda is open for business, that with the right partners and the right ideas certainly there’s an opportunity here.
What are your thoughts on some of the lessons that have been learned within the insurance-linked securities (ILS) sector of the market?
Webber: One of the things I’d like to underline is that Bermuda is a major player in the funds industry, period. We are in the top three
69 Bermuda Finance | 2014
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