A news report out of Ireland claims that many Bermuda international companies are considering plans to relocate the bulk of their businesses — leaving just satellite offices on the Island — because of concerns over work-permit time limits and the possibility that the Island may go independent.

An article put out by insurance industry consultants Advisen yesterday and sourced from Irish business magazine group Moranna Ltd., said the six-year time limits, which became effective this week, could lead to a "corporate exodus from Bermuda" and that the Island's loss could be Dublin's gain.

Written by Dublin-based financial writer Romil Timbadia, the story, which was picked up, by the European Intelligence Wire, states: "It is understood that almost half of all guest workers with six-year work permits expiring this year will be leaving Bermuda during 2007.

"This includes skilled workers employed in the financial services sector. The six-year work-permit-limit rule, which became law in 2001, will see the first batch of work-permit limits expire from April 2007. Further expirations are due to take place later in the year.

"That's not all. The political situation currently in Bermuda is a hot potato and the debate on whether or not the country votes for independence is creating disarray in the minds of top management of many financial service companies located there.

"Industry sources say many financial services companies (mostly insurance companies) are considering relocating to other countries — including Ireland — with a view to having only a satellite office in Bermuda."

In response to the story, David Ezekiel, chairman of the Association of Bermuda International Companies (ABIC) warned yesterday that rival jurisdictions would look to exploit any "chink in our armour".

"We are working closely with Government to address the whole issue of term limits and the impact on our sector," Mr. Ezekiel said.

"Our competitors will continue to look for any chinks in our armour, and it is up to us to ensure that we maintain our leadership in this area.

"As we have often said our major competition is ourselves, and we have to look at what has made us successful and not let the others become a competitive threat.

"We are hopeful that we will achieve this goal in partnership with Government, and continue to be a major contributor to the Bermuda economy and to young Bermudians seeking a long-term future in the international business arena."

Like many international business centres, Dublin is facing a skilled-staff shortage as it expands and the Irish capital would welcome an influx of such people from Bermuda — indeed the FT piece describes such an event as "a godsend".

The article states: "Sources within recruitment agencies say that Dublin is one of the preferred options for them. 'Of the people who do leave, many potential financial service employees could move to Dublin as the financial sector here is booming,' claims Chaim Courts, consultant at GAAPS Specialist Recruitment Group.

"This move will be a key ingredient to address the skill shortages issue Ireland faces in the financial services sector. Helen Crofts, director at EJS Search, puts it bluntly: 'Any influx of professional staff to Dublin would help the skill shortage.'"

The piece quoted Richard Tulloc director of actuarial services at Deloitte and an ex-employee in Bermuda, who said: "Over the years, many of the major reinsurance companies based in Bermuda have opened offices in the major insurance and reinsurance centres around the world including Dublin. This would certainly make it easy for them to expand their presence in Dublin if they experience difficulties retaining staff in Bermuda."

Recruiting form boss Mr Courts goes on to discuss options of those whose work permits in Bermuda have expired.

"There are probably three ways to go: back to where you came from, having had your fun in the sun; on to the Cayman Islands (another financial services jurisdiction); or newer pastures if you're still young enough to want to go adventuring. This is where Dublin would be an attractive alternative," Mr. Courts was quoted as saying.

Ms Crofts said Dublin should take direct steps to ensure it did not miss out on the talent leaving Bermuda. "It may also be a good idea to contact the Bermuda Immigration Department and investigate the possibility of a Government-sanctioned roadshow to the Island to publicise the potential Dublin has to offer.

"I suspect many of the North Americans may not have even considered Dublin as a possibility, and so raising its profile would be a good idea."

Ms Crofts went on to suggest that Bermuda's international companies, which have previously indicated that they had no plans to move away if Bermuda were to go independent, may not actually be thinking that way.

Ms Crofts said: "The large employers are being very diplomatic and publicly saying that if the Bermudians want independence then that is entirely their choice, and of course they (the employers) would remain on the island... but somehow I doubt this."

‘Corporate exodus’