UBP reacts to Minister disputing Chamber's work permit figures
Minister of Economy Kim Wilson reiterated that Bermuda has not lost 3,500 work permit holders since 2007.In fact the number of active one- to five-year active work permit holders increased by 636 between 2007 and 2010.However, she said the Island is facing “difficult times” when it comes to unemployment and that she will be announcing “short-term steps” to deal with the situation in the near future.Sen Wilson said it was misleading for the Chamber of Commerce to state the number of work permits on the Island had decreased by 3,500 over three years.The Chamber made the claim in a November 2010 report titled Bermuda's Economy and Business Outlook.In the 51-page document the Chamber stated that each work permit holder accounts for approximately $100,000 in direct spending in Bermuda's economy, which amounts to a $350 million loss since 2007.Sen Wilson said: “While there were less work permits issued during these years, there are actually more active work permits which have not expired.”She said the Chamber of Commerce used the number of work permits issued when it compiled its statistics, but did not look at the number of active work permits on the Island.”As reported in The Royal Gazette in December the number of active one- to five-year work permits in 2007 was 9,491. In 2009 the figure rose to 11,001 and in 2010 it was 10,127.Sen Wilson said: “The Chamber has quoted the numbers of work permits issued which range in length from up to three months to five years. There has been a drop between 2007 and 2009.“However, this is because some employers submitted applications for two-to five year work permits which would in turn reduce the need to apply for yearly work permits as may have been the case previously.”There were in fact 636 more expatriate workers in Bermuda in 2010 than there were in 2007.”The Government remains confident that by placing Labour and Training, Bermuda College and the issuance of work permits, all under the Ministry of Economy, Trade and Industry, a better assessment of the workforce needs can be accomplished.“In short, the amalgamation of these departments under one Ministry will better ensure that fairness and equality exists as we strive to reach the delicate balance between allowing in the appropriate cases, the contributions of our guest workers to live and work in Bermuda, whilst at the same time, taking steps to best ensure that qualified, Bermudians are not displaced in the process.”The work permit data provides invaluable information that is to be used as a guide to understanding the needs of the workplace. It is this information that should serve to educate and empower Bermudians to train in specific areas.”As it relates to general employment matters, these are indeed difficult times and in the coming days I will share more specific employment data and discuss short-term steps that the Ministry will be taking in this respect.”UBP reactionThis afternoon the United Bermuda Party issued a statement from Shadow Finance Minister Bob Richards on the issue.It said: "How are Bermudians supposed to interpret the statistics revealed by the Economy Minister that purport to show an increased number of foreign workers in Bermuda?"They fly in the face of all anecdotal evidence that clearly points to Bermuda having far fewer foreign workers today than it did three years ago."At issue is an apparent disagreement over work permit statistics. The Chamber of Commerce, using Department of Statistics data, reported 3,500 fewer work permits in 2010 than there were in 2007; while estimating that the decline amounted to $350 less circulating through the economy in that period."Minister Kim Wilson took issue with the Chamber’s 3,500 figure to say that her analysis showed there were actually 636 more expatriate workers on the Island last year than in 2007."It is this point that we take issue with. We would like to know in what sector is this larger number of foreign workers employed."We know:• International companies have shed workers, either via outsourcing or simply laying off.• Hotels have downsized• The construction industry has witnessed a sharp contraction, shedding many workers.• We have reports of the retail sector shedding jobs because there are fewer shoppers resulting in sagging retail sales.• The traffic in the morning commute is lighter than it was a few years ago.• It’s a tenants’ market because there are fewer guest workers seeking to rent apartments. Vacancy rates are unprecedented in the modern era.• New international company incorporations are few and far between.• Larger firms have sublet their office spaces because of downsizing."So if there has been a net increase in foreign workers, what sector of the economy is responsible for that growth: government? Perhaps she is implying that all the laid off workers are Bermudians while guest worker numbers have swelled."The Minister’s statement flies in the face of all this real world evidence. It is very hard to believe what she is saying. It has all the hallmarks of a sleight of hand!"