Big business has backed a relaxation of the rule ensuring majority Bermuda ownership of local companies.

The Association of Bermuda International Companies (ABIC) said that the Budget pledges to review of the 60/40 rule, support for the Bermuda Business Development Agency (BDA) and the creation of the new Bermuda Tourism Authority signalled a commitment to getting the Island back on track.

“Each of those initiatives is focused on the objectives to retain existing business and attract new businesses and revenue sources to the Island,” ABIC said in a statement.

“We believe there is an urgent need to formulate and execute strategies which maintain and grow international business, tourism and additional revenue sources.”

ABIC chief George Hutchings said that the two-track strategy proposed by Finance Minister Bob Richards — growth in the economy and a cut in Government expenditure — would assist recovery.

“ABIC supports the actions already taken and those promised to further develop a business-friendly environment and to promote investment and job creation,” he said.

“We encourage the implementation of targets and accountability in the management of our Island’s finances and to close the Budget deficit at a pace that the Bermuda community can withstand.”

Mr Hutchings was speaking after Mr Richards last Friday announced a total of $70 million in spending cuts — but with no job losses, at least in the current financial year.

He added that the Island’s debt burden could only be reduced if existing businesses and jobs were retained.

And he said that international business and support services provided more than 80 percent of Bermuda’s foreign exchange and a third of air visitors, while most of the jobs in the sector were held by Bermudians.

The ABIC statement added: “Our members have identified cost, immigration reform and a business-friendly environment as key issues and progress has been made on each of these areas.”

ABIC added that changes to the Incentives for Job Makers’ Act — which made it easier for non-Bermudian senior executives to be exempt from work permit requirements and to be granted permanent residency — and changes to work permit policy, as well as no new taxes, would help job creation.

And the statement said: “Public policy should create certainty and encourage investment while allowing us to improve the Island’s competitiveness and to grow jobs and Government revenues.”

Mr Hutchings added: “ABIC continues to have an open and transparent dialogue with the Government with regard to the consultation on key international business policies as well as the sharing of information and data that will help to further develop Bermuda as the domicile of choice.

“And more importantly, ABIC wants to grow those jobs necessary to accelerate our economic recovery and provide the Bermudian people with employment opportunities to support their families.”