Protectionist policies run against world trends -- and the views of British Labour Prime Minister Tony Blair, Opposition leader Pamela Gordon said yesterday.

And Ms Gordon -- in Davos, Switzerland, for the World Economic Forum -- said Government's tough new policies on work permits were in sharp contrast to international strategies to deal with the global economy.

Premier Jennifer Smith -- also attending the Davos summit with other members of Government -- was unavailable to comment.

But Ms Gordon warned that extra red tape could mean firms choosing to go elsewhere -- or base some employees in other jurisdictions.

Mr. Blair's speech to the conference of world movers and shakers from governments, big business and the academia stressed the European Union had redirected its efforts to take advantage of hi-tech sunrise industries -- including cutting red tape that tied up business.

In Bermuda meanwhile, Government has just announced a new deal on work permits -- including maximum time limits, although with consideration for essential personnel, and a fee ladder for successive renewals.

Also introduced was a new reporting system where employers will have to fill in forms on the ethnic make-up of their workforces every year -- designed to promote racial equality and attack discrimination -- with fines of up to $5,000 for companies which fail to provide information to the Commission for Unity and Racial Equality.

Ms Gordon said: "They are using disincentives -- each year you reapply for a work permit, it's going to cost more money.

"You see in Davos how much the world is opening up to business and how countries are trying to attract people to their shores.

"But Bermuda is starting to put in place a bureaucracy which will limit our potential for short-term political expediency rather than aiming for expansion.'' She added that economies were increasingly information, knowledge and education-based -- especially hi-tech e-commerce which Bermuda is working to attract to the Island.

Ms Gordon said: "Tony Blair said heavy-handed state intervention is dead and buried -- the key to managing change is reform and to upgrade the country and its people.

"Part of the rationale is that government should have an enabling role and be eliminating the barriers to business.'' Ms Gordon said: "What the Bermuda Government should be doing, as opposed to creating disincentives which start a downward spiral, Government should be giving incentives.

Ms Gordon said: "We all want to see improved job opportunities for Bermudians -- for 30 years, the UBP carefully managed Bermuda's enormous economic growth and created enormous opportunities for Bermudians.

"There is real cause for concern when you listen to what's happening in Davos and the direction the rest of the world is going in.'' IMMIGRATION IMM GOVERNMENT GVT