Friday, 12 December 2008
Business Exodus Warning
More companies are considering jumping ship to Switzerland, as the "quiet drain" of money and personnel from Bermuda appears to be gathering pace. Industry insiders said yesterday most Bermuda-based insurance firms have one eye on moving their headquarters to Europe - following the route taken by three separate companies on Wednesday. The news comes as the industry continues to digest the "implosion" of XL, a company once considered a barometer for the health of Bermuda's economy as a whole. XL's share price crashed through the floor on Wednesday amid rumours the company is up for sale. And the Bermuda Sun has learned that the company has already shed up to 70 jobs - far higher than the official number of layoffs. Golden era over?Former premier Sir John Swan said yesterday that the "golden era" of international business on the island now appears to be over. He said even a modest decline in big business will affect every Bermudian, with taxi drivers, restaurateurs, house painters and anyone with an apartment to rent feeling the "trickle down effect." Minister of Finance Paula Cox struck a calmer note, saying recent developments are "cause for close monitoring" but insisting the island is in a strong position to endure economic turbulence. (See page 6 for Ms Cox's comments). Sir John urged all Bermudians, from the man on the street to the leaders of the country, to try harder to make international business feel welcome. "Unfortunately, when things were going really well, when things were at their best, we were at our worse: making more noise about race and about term limits," Sir John said. "We thought: 'we don't need to think about these people; they [international big business] will always be here.'" Referring to Government's announcement this week that they will review the six-year work permit limit law that proved so unpopular with big business, Sir John said: "Now things have started to slow down we are thinking about those things. Six months ago you couldn't get anyone to talk about work permit limits. But now it may be too late; you have to make your friends before you need them."Changes to tax lawsSir John said many of the factors affecting big business are out of the island's hands, including the global economic downturn and moves in the U.S. to change offshore tax laws. However, making the island more welcoming is up to everyone. He said: "It requires a sacrifice from all Bermudians. If you want to have a loose tongue and tell people [ex-pats] where to get off; if you want to think only what is best for you; if you want to be that arrogant then we all suffer the consequences." Don Kramer, head of Ariel Re, is an ex-pat and long term resident. He agrees that subtle messages have been sent out making international business leaders feel less welcome. He said: "For example, at the airport, there used to be a line for residents and non-residents. Now it is Bermudians and non-Bermudians. The Government is in a difficult position: it has to pander to a segment of their constituency that considers ex-pats a waste of oxygen on their island. On the other hand, I have to believe that Government is intelligent enough to know where the wealth comes from." Mr. Kramer - who oversees around 60 employees at Ariel Re - said he has had a serious look at moving his own headquarters to Switzerland, although he has decided that option is currently "not on the radar." He believes all insurance firms have been obliged to consider such a move. The reason is increasing "aggression" from lawmakers and tax inspectors in the U.S. No longer preferredShadow Finance Minister Grant Gibbons said that recent moves to Switzerland are symbolic and prove Bermuda is no longer the "preferred jurisdiction" for companies considering a move. He said: "There should be serious concern in the community about the health of our international business." Mr. Gibbons believes Government has squandered its goodwill with big business by obsessing about race. He said Premier Ewart Brown's recent remarks in Parliament about white Bermudians not supporting Barack Obama was just the latest example of Dr. Brown sending out the wrong message. Mr. Gibbons said: "The PLP needs to think long and hard about its leadership at this present time." Describing the consequences to the country if big business declines, Mr. Gibbons said: "Most directly, 60 per cent of employees in those companies are Bermudians. If jobs are lost, Bermudian families suddenly find themselves without a breadwinner. Then there is the huge amount of money Government makes directly from payroll tax - that goes. Business people take taxis, eat at restaurants; they work in offices that have to be built and maintained. They stay in apartments that will soon be empty if we are not careful." Officially, XL announced it had shed 47 jobs. However, insiders say at least 70 of around 320 staff have moved on, with many jumping ship before being pushed. One insider said parts of XL's offices now resemble "a ghost town" with desks empty and morale low. The entire operation could fit inside one of the company's two towers and XL has lobbied Government to try to rent out its second tower, the insider said. However, when XL and ACE were granted special permission to buy property in Bermuda it was done on the proviso they would not rent out any office space.The Bermuda Sun called XL spokeswoman Carol Parker-Trott for comment yesterday but received no reply by press time.XL’s decline: should you be worried?As a long-standing powerhouse of Bermuda's insurance industry, XL has long been seen as a barometer for the health of the economy. So does its rapid decline forebode a similar collapse for the island's other firms? No, experts say; XL's problems are individual and tied to specific investments. Peter Everson, a consultant for Schroeder's asset management, said: "The factors affecting XL are related to that company and that company alone. General Motors, one of the most prestigious companies in America, has had to go to the Government for help; that does not mean all American automotive companies are in trouble." David Ezekiel, chairman of the Association of Bermuda International Companies, agrees XL's problems are specific. However, he said the decline of such an "iconic" local company was still a psychological blow for everyone in the industry. Mr. Ezekiel said: "The [local] industry has been defined by Ace and XL. It's a blow to the psyche."by Tim Hall
Thursday, 4 December 2008
Global War for Talent
Article published December 4. 2008 01:10PMIsland in a 'global war for talent' says BEC study By Alex Wright
The number of Bermudians filling jobs in the domestic market will not be enough to sustain the Island's economic prosperity over the next two decades.
That was the stark message from the Bermuda Employers' Council (BEC) survey entitled 'The Shift: An Examination of Employment Trends in Bermuda', which reveals there is an impending labour market shortage due to a falling birth rate and a low projected population growth for the country in the next 20 years.
The study, which was carried out in June 2008 and presented to delegates at the BEC's Annual General Meeting held at the Fairmont Hamilton Princess hotel yesterday, also shows a shift to a more knowledge-based economy which has created additional pressures on the private sector to secure the level of skilled resources needed to sustain and grow their businesses.
Allied to this there is already some evidence of offshoring jobs to other jurisdictions due to the shortage of certain skilled workers in Bermuda, a trend which is set to continue and accelerate in the future as worldwide demand for talented employees increases.
The report found that even at modest growth rates in the economy of one percent per year, the projected rise in the amount of jobs will lead to an inevitable drop in the percentage of Bermudians in the total workforce, with the percentage of working black Bermudians expected to decline to less than half the workforce over time.
"Even conservative economic growth will lead to a higher demand for workers than Bermuda can produce domestically," it read.
"Public policy must recognise this and should focus on efforts to maximise the employment opportunities for all Bermudians, with strong emphasis on training and education to prepare future generations, especially for the higher level knowledge-based job opportunities that are being created."
The survey called on employers to think about repatriating Bermudians working overseas, while it said Government's "disproportionate employment" of available Bermudians should also be considered given the negative impact it has on the availability of Bermudians in the private sector in a bid to mitigate the need to import additional workers.
"Bermuda is faced with a significant dilemma: the need to maximise the job opportunities for its citizens, balanced with the need for continued economic growth that is insufficient to meet economic growth even at modest levels," the report continued.
"Government policy really must recognise and focus on this reality and develop strategies that will prepare the next generation of Bermudian workers with the necessary skills and education to take full advantage of an increasingly sophisticated job market.
"At the same time Government must recognise that it is a global war for talent that is becoming more competitive with each passing day and work hard to ensure that Bermuda remains a place of choice for those willing to relocate to the Island to help build the country's long-term prosperity."
The report concluded that the reality of a growing economy and the need for more workers than the Island can produce was that Bermudians were increasingly likely to be a minority group in a range of occupations and professions, dating back to 1994 and set to continue.
It said Government needed to ensure that Bermudians are well-prepared to take on the highest level of employment and the most desirable jobs in the economy, using a long-term strategy focusing on training and education to maximise job opportunities for Bermudians.
"Bermuda's economy has outgrown Bermuda's domestic workforce and both the country and its citizens must adjust to this reality if economic prosperity is to continue," it said.
The number of Bermudians filling jobs in the domestic market will not be enough to sustain the Island's economic prosperity over the next two decades.
That was the stark message from the Bermuda Employers' Council (BEC) survey entitled 'The Shift: An Examination of Employment Trends in Bermuda', which reveals there is an impending labour market shortage due to a falling birth rate and a low projected population growth for the country in the next 20 years.
The study, which was carried out in June 2008 and presented to delegates at the BEC's Annual General Meeting held at the Fairmont Hamilton Princess hotel yesterday, also shows a shift to a more knowledge-based economy which has created additional pressures on the private sector to secure the level of skilled resources needed to sustain and grow their businesses.
Allied to this there is already some evidence of offshoring jobs to other jurisdictions due to the shortage of certain skilled workers in Bermuda, a trend which is set to continue and accelerate in the future as worldwide demand for talented employees increases.
The report found that even at modest growth rates in the economy of one percent per year, the projected rise in the amount of jobs will lead to an inevitable drop in the percentage of Bermudians in the total workforce, with the percentage of working black Bermudians expected to decline to less than half the workforce over time.
"Even conservative economic growth will lead to a higher demand for workers than Bermuda can produce domestically," it read.
"Public policy must recognise this and should focus on efforts to maximise the employment opportunities for all Bermudians, with strong emphasis on training and education to prepare future generations, especially for the higher level knowledge-based job opportunities that are being created."
The survey called on employers to think about repatriating Bermudians working overseas, while it said Government's "disproportionate employment" of available Bermudians should also be considered given the negative impact it has on the availability of Bermudians in the private sector in a bid to mitigate the need to import additional workers.
"Bermuda is faced with a significant dilemma: the need to maximise the job opportunities for its citizens, balanced with the need for continued economic growth that is insufficient to meet economic growth even at modest levels," the report continued.
"Government policy really must recognise and focus on this reality and develop strategies that will prepare the next generation of Bermudian workers with the necessary skills and education to take full advantage of an increasingly sophisticated job market.
"At the same time Government must recognise that it is a global war for talent that is becoming more competitive with each passing day and work hard to ensure that Bermuda remains a place of choice for those willing to relocate to the Island to help build the country's long-term prosperity."
The report concluded that the reality of a growing economy and the need for more workers than the Island can produce was that Bermudians were increasingly likely to be a minority group in a range of occupations and professions, dating back to 1994 and set to continue.
It said Government needed to ensure that Bermudians are well-prepared to take on the highest level of employment and the most desirable jobs in the economy, using a long-term strategy focusing on training and education to maximise job opportunities for Bermudians.
"Bermuda's economy has outgrown Bermuda's domestic workforce and both the country and its citizens must adjust to this reality if economic prosperity is to continue," it said.
Friday, 28 November 2008
Wednesday, 19 November 2008
Island aims to lead with GIS technology
Bermuda is aiming to become a world leader among small island nations in the use of Geographic Information Systems (GIS), according to Telecommunications Minister Terry Lister.
Police and Fire Services use the technology to quickly determine the locale of an incident, while Government uses it in planning applications, land valuation and protecting the Island's healthy coral reefs, the Minister said.
Speaking at a press conference marking International GIS day, Mr. Lister said: "GIS in Government is a collective and co-operative effort driven by a number of departments.
"The Government has made exceptional progress in the use of Geographic Information and Bermuda is well positioned to become a worldwide leader among small island nations in the use of GIS. Our main challenge now is to effectively meet and manage the increasing demand for GIS services as more Government departments and businesses begin to realise the value of GIS.
"As Bermuda's environment becomes more complex, emergency services are becoming increasingly dependent on the ability to access multiple layers of geographic data, which can be provided by several departments as for instance, roads, addresses and buildings are provided by the Ministry of Works and Engineering.
"The GIS Committee created the following vision statement as part of its strategy. It states that: 'The Bermuda Government will be, and will be recognised as, a world class provider and user of geographic information and services. With our collaborative, accessible and reliable spatial data infrastructure, we will enhance efficiency and promote integrated decision making to positively impact Bermuda's society, environment and economy.'
"I am confident that the collective efforts of the Government departments on Government's GIS Committee and the strategy we are now embarking upon will make this vision a reality and will position Bermuda to take advantage of the many opportunities and services that can be provided by this technology."
Demonstrations of GIS in surveying, habitat mapping, conservation, planning, archaeology and tourism will take place at Bermuda Aquarium, Museum and Zoo on Monday from 2 p.m. to 5 p.m. Admission is free.
By Tim Smith
Police and Fire Services use the technology to quickly determine the locale of an incident, while Government uses it in planning applications, land valuation and protecting the Island's healthy coral reefs, the Minister said.
Speaking at a press conference marking International GIS day, Mr. Lister said: "GIS in Government is a collective and co-operative effort driven by a number of departments.
"The Government has made exceptional progress in the use of Geographic Information and Bermuda is well positioned to become a worldwide leader among small island nations in the use of GIS. Our main challenge now is to effectively meet and manage the increasing demand for GIS services as more Government departments and businesses begin to realise the value of GIS.
"As Bermuda's environment becomes more complex, emergency services are becoming increasingly dependent on the ability to access multiple layers of geographic data, which can be provided by several departments as for instance, roads, addresses and buildings are provided by the Ministry of Works and Engineering.
"The GIS Committee created the following vision statement as part of its strategy. It states that: 'The Bermuda Government will be, and will be recognised as, a world class provider and user of geographic information and services. With our collaborative, accessible and reliable spatial data infrastructure, we will enhance efficiency and promote integrated decision making to positively impact Bermuda's society, environment and economy.'
"I am confident that the collective efforts of the Government departments on Government's GIS Committee and the strategy we are now embarking upon will make this vision a reality and will position Bermuda to take advantage of the many opportunities and services that can be provided by this technology."
Demonstrations of GIS in surveying, habitat mapping, conservation, planning, archaeology and tourism will take place at Bermuda Aquarium, Museum and Zoo on Monday from 2 p.m. to 5 p.m. Admission is free.
By Tim Smith
Tuesday, 18 November 2008
Distinctive districts for revitalised Hamilton quarter
Published: November 18. 2008 09:45AM Distinctive districts for revitalised Hamilton quarter
By Matthew Taylor
Court Street: The hub of the North Hamilton Economic Empowerment Zone.
Exciting plans to transform North East Hamilton have been unveiled by Minister of Finance Paula Cox, detailing how the area will change over the next ten years.
Revitalisation will include creation of open spaces, expanding pedestrian areas, the introduction of more public art and more street lights.
Ms Cox said the neighbourhood varies dramatically from one block to the next so it was not possible to create a general set of policies and regulations.
"Therefore the innovative and creative solution is to capitalise upon the existing micro-neighbourhood structure of North East Hamilton and create 13 distinct districts."
It's hoped the redevelopment will attract more locals and tourists, improve and increase the housing stock, provide community facilities, protect areas of cultural value, consolidate neighbourhoods, increase commercial opportunities and inspire investor confidence.
The area became the Island's first Economic Empowerment Zone in November 2005.
Legislation will now be introduced to usher in the North East Hamilton Land Use Plan, to be known as the EEZ Local Plan, and see the establishment of an Economic Empowerment Zone Agency.
The next phase of the initiative will be to create a Local Plan for North East Hamilton which will contain specific, detailed land use policies and design regulations for each district.
The draft EEZ Local Plan will be subject to at least two months of public consultation and can be revised before it is brought to the House for final approval.
Ms Cox said: "North East Hamilton is an area steeped in tradition. It is an area in Hamilton that was once a hub of activity, full of vitality and energy.
"Yet regrettably over the years this area has not always reaped the economic benefits of other more recognised areas in the City of Hamilton.
"For this reason the Government determined to focus on North East Hamilton and its talented entrepreneurs in a bid to jumpstart much needed attention and capital to this multi-faceted section of our community."
To date stakeholders in the zone have taken advantage of :
• Bermuda Small Business Development Corporation guarantees on business loans.
l EEZ business loans and grants, available up to a maximum of $10,000 each.
l Reduction in payroll tax rate up to nine tax periods for new businesses established in the EEZ.
l Wealth building and financial management courses for EEZ residents.
l Grants provided to EEZ community organisations to undertake direct grassroots initiatives in the zone.
l Duty exemption for retailers on imported items for capital improvement and refurbishment projects.
By Matthew Taylor
Court Street: The hub of the North Hamilton Economic Empowerment Zone.
Exciting plans to transform North East Hamilton have been unveiled by Minister of Finance Paula Cox, detailing how the area will change over the next ten years.
Revitalisation will include creation of open spaces, expanding pedestrian areas, the introduction of more public art and more street lights.
Ms Cox said the neighbourhood varies dramatically from one block to the next so it was not possible to create a general set of policies and regulations.
"Therefore the innovative and creative solution is to capitalise upon the existing micro-neighbourhood structure of North East Hamilton and create 13 distinct districts."
It's hoped the redevelopment will attract more locals and tourists, improve and increase the housing stock, provide community facilities, protect areas of cultural value, consolidate neighbourhoods, increase commercial opportunities and inspire investor confidence.
The area became the Island's first Economic Empowerment Zone in November 2005.
Legislation will now be introduced to usher in the North East Hamilton Land Use Plan, to be known as the EEZ Local Plan, and see the establishment of an Economic Empowerment Zone Agency.
The next phase of the initiative will be to create a Local Plan for North East Hamilton which will contain specific, detailed land use policies and design regulations for each district.
The draft EEZ Local Plan will be subject to at least two months of public consultation and can be revised before it is brought to the House for final approval.
Ms Cox said: "North East Hamilton is an area steeped in tradition. It is an area in Hamilton that was once a hub of activity, full of vitality and energy.
"Yet regrettably over the years this area has not always reaped the economic benefits of other more recognised areas in the City of Hamilton.
"For this reason the Government determined to focus on North East Hamilton and its talented entrepreneurs in a bid to jumpstart much needed attention and capital to this multi-faceted section of our community."
To date stakeholders in the zone have taken advantage of :
• Bermuda Small Business Development Corporation guarantees on business loans.
l EEZ business loans and grants, available up to a maximum of $10,000 each.
l Reduction in payroll tax rate up to nine tax periods for new businesses established in the EEZ.
l Wealth building and financial management courses for EEZ residents.
l Grants provided to EEZ community organisations to undertake direct grassroots initiatives in the zone.
l Duty exemption for retailers on imported items for capital improvement and refurbishment projects.
Saturday, 8 November 2008
My Inspiration
To laugh often and much; to win the respect of intelligent people and affection of children; to earn the appreciation of honest critics and endure the betrayal of false friends; to appreciate beauty, to find the best in others; to leave the world a bit better, whether by a healthy child, a garden patch or a redeemed social condition; to know even one life has breathed easier because you have lived. This is to have succeeded. —Ralph Waldo Emerson —
Tuesday, 4 November 2008
OBAMA WINS!!!!!
YES WE HAVE! OBAMA IS PRESIDENT ELECT AND I SAW IT LIVE. HISTORY HAS BEEN MADE AND THE PEOPLE HAVE SPOKEN.
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