The contraction of the international business sector is a warning sign that Bermuda must be smarter, better and more competitive to attract new business to the Island.That is according to George Hutchings, chairman of the Association of Bermuda International Companies (ABIC), who said that in the face of increased competition from rival jurisdictions, in 2011 ABIC and Government needed to ensure that Bermuda reaffirmed its position as the domicile of choice.Mr Hutchings along with a number of the Island’s business chiefs gave their outlook on the year ahead and their hopes and aspirations for the next 12 months.He said that in order to maintain and add jobs in the international business sector, companies need to grow and new trade must be brought in, with specific industries targeted and invited to set up in Bermuda.“The cost, comfort and ease of doing business in Bermuda are critical considerations for a company making a domicile choice to either move to Bermuda or to maintain an existing presence,” he said.“In the throne speech, the Premier has identified a number of other internal factors to be addressed such as public safety, public education, government bureaucracy and fiscal management.“International business needs to find constructive and innovative ways to partner with the community to assist in some of these endeavours such that the quality of the total environment is enhanced relative to its present position.“Now is not the time to rest on our laurels, but rather it is a time to aggressively sharpen our focus.”Mr Hutchings said that in line with Premier Paula Cox’s throne speech, ABIC needed to work with Government to address these and other issues, while maintaining a regular dialogue with the appropriate Ministries and providing constructive feedback and ideas.“ABIC represents the full diversity of international business in Bermuda and our members know what makes doing business in the Bermuda domicile both attractive and challenging.“We have excellent data on those issues that affect our business and we must continue to provide direct and unfiltered feedback to Government on all of these pressing issues.“Government has made a commitment to transparency and collaboration. ABIC, as the voice of international business in Bermuda, will continue to share data and provide feedback from our members on policies that affect our sector and Bermuda as a preferred domicile.“Bermuda has an excellent reputation that has been developed over many years. This reputational capital must be jealously protected and enhanced by all the Island’s stakeholders. To do so will require a collaborative effort by all of us no matter what our individual nationality, race, occupation, age or sex may be.”Michael Fahy, spokesman for the Bermuda Democratic Alliance, said that the difference between his party’s wishes for the economy and business and the probable reality were diametrically opposed.On the top of his wishlist was a “complete turnaround” in Bermuda’s economic fortunes, a recovery in the retail sector, a massive influx of new international business companies, a reversal of unemployment, a rebound by the construction industry, new opportunities for small Bermuda-owned businesses and some transparency from Government over the management of its “unsustainable debt”.He said that while he did not believe this would happen, if the concerns of Bermudians and international business which are the driving force of the country’s economy were heard, there could be a gradual turnaround by the end of the third quarter of 2011.“Tough decisions will need to be made by Government for this to happen,” he said.“We need to know what will be done to save $150 million per the Premier’s undertaking. We believe that a cut in consultants will help, but it is also likely there will need to be a reduction in the number of hours worked by the civil service or even redundancies.“Efficiency must be the name of the game. We also believe that we must address the concerns of international business. Work permit concerns must be addressed. Tax incentives for new businesses must be a priority. A reduction in payroll tax, Government red tape and healthcare costs must be made to reduce international business overheads.“For the retail sector, a change in the way import duty is charged will assist. Outsourcing contracts undertaken by Government to the private sector per our platform can incentivise Bermuda business.“The fact is that the outlook is bleak for 2011. We have not yet hit bottom - we need some honesty on this point. That would be refreshing. We remain hopeful for our future, but much needs to be done for it to be a great one.”Brad Kading, president and executive director of the Association of Bermuda Insurers and Reinsurers, said that 2011 was all about working towards Solvency II equivalence.“In Bermuda we will work with our members on compliance with the Bermuda Monetary Authority’s (BMA) updated risk based regulatory regime,” he said.“We will be supporting the BMA’s efforts to win equivalency for internationally active insurance groups under Europe’s Solvency II regime.”John Harvey, CEO, Bermuda Hotel Association, said he would like to see a strong resurgence of the US economy resulting in a reduction in unemployment and a return to Bermuda hotels being booked for both leisure and group business, as well as a concentrated effort being made by all stakeholders to tackle the spiralling cost of health care and reduce the escalation of crime.Michael Butler, chairman of the Bermuda Automotive Distributors’ Association and general manager of Bermuda Motors, said he foresees no change in the auto market over the next year unless there is a reduction in the cost of vehicles.“There is no sign of any growth in the economy that would stimulate vehicle sales in 2011,” he said. “I think most people will try to keep their present vehicle going a little longer.”