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Burgess refutes outsourcing claims

Derick Burgess

An opposing claim about the impact of Government's work-permit policy, its effect on international companies and knock-on consequences for Bermudian jobs, has been made by Labour Minister Derrick Burgess.

He refutes a suggestion by business leader David Ezekiel that companies are looking to set up offices overseas to outsource work because of difficulties related to the six-year work term limit for ex-pats which, as an unforeseen consequence, will lead to administrative and processing jobs normally done by Bermudians also shifting to these new locations.

Minister Burgess yesterday said he has no evidence of that happening and no-one has approached him or his Ministry with such concerns.

Bizarrely the Labour Minister and Mr. Ezekiel, who is chairman of the Association of Bermuda International Companies (ABIC), have not spoken to one another since The Royal Gazette broke the original story on August 9.

Using unequivocal language, Mr. Burgess dismissed the ABIC leader's concerns as being without evidence but also revealed he had not felt it necessary to call Mr. Ezekiel during the past two weeks to speak about the matter.

"I feel that people will be confused due to misinformation, as subjective and uninformed statements lead to anxiety and uncertainty in the minds of those affected by the term limits policy," said Mr. Burgess. "I am not aware of any company that has experienced significant difficulty since the term limits policy was introduced."

He said Government recognised that nothing must be done to jeopardise the continuing success of business in Bermuda.

Mr. Ezekiel, who is currently in the UK, has warned that Bermuda-based international companies seeking to outsource jobs overseas that were previously filled by ex-pats on the limited work permits will end up also taking jobs usually filled here by Bermudians — such as cashiers and processing — overseas because of the economic logic.

He said his own company International Advisory Services, the largest captive management firm on the Island, was already looking to outsource because of difficulties having to constantly replace work permit staff, and added: "We are not the only ones. Everyone is."

But Mr. Burgess said there was no evidence.

The Royal Gazette asked the Labour Minister if he had spoken to Mr. Ezekiel about his comments. He replied: "No"

Royal Gazette then asked: "So how can you be sure what he has said isn't what's happening?"

Mr. Burgess: "We are in charge. We know what is happening. And if Mr. Ezekiel had a concern like that, with all the communications and dialogue that we have I would have thought he would have called us."

Royal Gazette: "He represents such a large body of companies, that is significant."

Mr. Burgess: "We represent the entire Bermuda, everyone."

Royal Gazette: "Haven't you contacted him?"

Mr. Burgess: "Why should I? Mr. Ezekiel has my phone number, he has my permanent secretary's number. If he has got concerns he can call us. We have said to him and anyone who meets us — we are not off limits to anyone. Easy access."

Royal Gazette: "I find it surprising that he has not contacted you and you have not contacted him."

Mr. Burgess: "There's no need for me to contact him. If anyone has a concern or problem, call us. I do not take my agenda from the newspaper as far as calling anyone, because if they had concerns they would have called us."

A representative of ABIC said it was considering Mr. Burgess statement but did not expect to issue a response until sometime next week.