The Shadow Attorney General is calling on Government to extend the deadline for mixed-status couples who need to apply for a land licence — and then to consider changing the law altogether.

Trevor Moniz told The Royal Gazette that the Bermuda Immigration and Protection Amendment Act 2007 had caused a "great deal of confusion" in the community and needed rethinking due to the recession.

As reported in this newspaper on Thursday, the June 22 deadline for compliance with the law — which requires some Bermudians married or living with a foreign partner to get a $1,375 land licence — is fast approaching.

The penalties for those in breach of the law are a jail term of up to five years and/or a fine of up to $1 million.

The deputy Opposition leader said: "We are in a deep recession now, which is going to get worse. I think this thing needs to be revisited and I think the amnesty period needs to be extended."

Banks have been sending out letters to mortgage customers reminding them to find out if they need a licence — but the advice given from HSBC Bermuda contradicts the Department of Immigration.

Licences are needed where foreigners provide financial assistance for the acquisition of property; HSBC says that could include paying household bills such as electricity and water but the Department says not.

Mr. Moniz claimed: "Now we have total confusion. The banks weren't on top of it. It's only now that they are sending letters out desperately to everybody. Everybody is in a state of panic.

"This whole thing needs to be revisited and Government needs to get on top of it as quickly as possible. Let's do something to resolve the confusion."

The UBP MP said the law — designed to restrict the amount of land owned by non-Bermudians — was well-intentioned but badly executed.

"What I would do if I was the [Immigration] Minister, is remove the restriction or ease the restriction as it affects spouses of Bermudians and Bermudian children with non-Bermudian parents."

He questioned how Government would police the law after the deadline passed.

"The penalties are very stiff," he added. "There are cases when people say 'I was unaware that I was supposed to do this'. In a lot of cases, I would be very sympathetic."

The 2007 Act also prevents mixed-status couples from having more than one property. Katherine Michelmore, deputy leader of Bermuda Democratic Alliance, said last week's story brought that issue to the fore again.

"This legislation effectively creates a second class of Bermudians on the basis of their decision to marry a non-Bermudian," she said.

"Bermudians who marry non-Bermudians are therefore disadvantaged financially, as are their Bermudian children, as they cannot make purchases of 'investment properties'.

"It is unfair to penalise Bermudians based on their marital status. All Bermudians should have equal rights under Bermuda's Constitution."

Dr. Michelmore said though her party understood concern about the high proportion of land owned by foreigners, the legislation was "not a fair and equitable way to address this".

Immigration Minister David Burch did not respond to requests for comment last week.