A picture of substantial earnings for Bermudians from international companies is highlighted in the just-released report by Mr. Brian Archer, entitled "International Companies 1994: Their Impact on the Economy of Bermuda'' (Ministry of Finance: $5.00).

The report showed that just under half, approximately $80 million, of the $169.8 million paid out in salaries by international companies last year went to Bermudians.

Bermudians gained in other ways from the presence of international business, including $40.3 million paid to the government in taxes, fees, duties, licences and levies.

International companies spent a further $135.8 million on paying to Bermuda companies professional fees and bank fees, together with more than another $80 million to other companies in Bermuda.

By last December, 8,224 international companies were registered in Bermuda, an increase of 8.5 percent over the previous year, 17.5 percent over five years and 36.5 percent over 10 years.

The 277 of them with a physical presence accounted for almost 75 percent of expenditure by international companies, although comprising just 3.3 percent of the total number.

International companies spent $431 million, while their 15,000 business visitors (and an accompanying 12,600 friends or relatives) were responsible for a further $15.2 million. And 53 percent or $228.4 million of that combined $446.2 million was spent directly by insurance-related companies.

International companies employed 1,348 Bermudian employees and 866 non-Bermudians.

Mr. Brian Archer further extrapolated that, including secondary effects, household re-spending, and the impact made by business visitors, total income generated by international companies was $661.3 million.

As a result of the international business industry, total public sector revenue generated was over $154.7 million and the net positive impact on the balance of payments was almost $75.8 million. And total employment as a result of this industry was maintained at over 5,700 jobs, while a further 5,900 jobs were affected.

Mr. Archer drew on sources that included a survey by the International Companies Division of the Chamber of Commerce of their 150 members, the annual survey of its members by the Bermuda International Business Association, and, "a variety of published and unpublished data provided by a large range of private and public sector bodies''.

The work was actually done both here and in the UK between March and September of this year.

More than one out of every three (37.5 percent) international companies on the register last December were identified as investment holding companies, the largest single group. Some 18 percent of the companies were insurance-related.

In the seven years to 1994, the most substantial growth has been in mutual fund companies (146.9 percent), investment holding companies (66.4 percent), `other' management and consultancy firms (62.7 percent), `natural resource' companies (48.5 percent) and shipping companies (33.3 percent).

But in terms of companies physically in Bermuda, it was insurance companies that dominated. Some 42.6 percent of the companies with a physical presence were insurance related in 1994.

Trading activities of international companies also included $19.1 million in office rentals, $16.9 million of capital expenditure and $12.4 million in communications. International companies put up $4.4 million in scholarships.

The latest Archer report summarises that total expenditure in Bermuda from international companies and their business visitors in 1994 accounted for $446.2 million. Against that, $61.5 million worth of imports were needed to service these companies and their visitors and a further $308.9 million of imports were needed to satisfy the demand from Bermudian households. The overall net impact on balance of payments then was plus $75.8 million.

And, including all secondary effects, international companies and their visitors contributed $154.7 million to public sector revenue for the year.

They created $661.3 million of income in Bermuda, of which $175 million was direct income.