Bermudian Bosses Optimistic, Although Warn Against Independence

by Amanda Banks, Tax-News.com, London

27 July 2005

Bermuda's chief executives are generally negative regarding the idea of the territory becoming constitutionally independent from the United Kingdom, although the overwhelming majority of bosses are optimistic about the prospects for their companies, according to a survey by the Association of Bermuda International Companies.

The survey, conducted by professional services firm PricewaterhouseCoopers between September and November 2004, was responded to by 47% of ABIC's 140 members. Of the 66 chief executives who took part in the survey, 90% said that they were very optimistic over their firms' prospects over the short to medium term.

Asked to consider the next five years, two-thirds of CEOs expect growth in employment, with the small and medium-sized firms most likely to recruit. Also, more than half of the company bosses that took part in the survey expected to be occupying larger premises in five years' time.

Overall, the survey revealed that international companies were positive on Bermuda as a jurisdiction in which to live and work, although the firms that responded to the survey were critical of Bermuda's work permit procedures, its limited availability of qualified staff and the public education system. However, the respondents were least satisfied with the prospect of independence from the UK.

To alleviate the problem of finding qualified employees, David Ezekiel, chairman of ABIC, noted that more needs to be done to enhance work experience, training and development, noting that the majority of middle and upper managerial positions were filled by non-Bermudians.

Mr Ezekiel observed that:

“The results of the survey are interesting. ABIC now intends to focus on a number of areas."

“Two that stand out are: Firstly, how to enhance the work experience, the training and development options and the promotion possibilities for Bermudians working in this sector."

“Secondly, development of a “smart growth” strategy for international business, looking for ways to manage its future development in Bermuda, given the size and infrastructure constraints that exist.”

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