Labour and Immigration Minister Derrick Burgess has reluctantly scrapped plans to create a register for land trusts after experts told him the move would cause serious damage to the Island?s trust business.

The scheme was to have been a major part of the Government?s efforts to clamp down on ?fronting? ? when Bermudians illegally ?front? trusts to buy and hold land on behalf of non-Bermudians.

But Mr. Burgess announced in the House of Assembly on Friday that his Ministry was withdrawing the Trusts of Land in Bermuda (Registration) Act 2006, which was tabled on December 1 last year.

Instead of the comprehensive trust register that was originally planned, Mr. Burgess on Friday tabled a replacement bill ? the Bermuda Immigration and Protection Act 2007 ? entailing a ?less intrusive form of information-gathering?.

?I have withdrawn from the concept of having a comprehensive registration scheme for all land trusts in Bermuda, a scheme that was of major concern to stakeholders who felt that it would be most injurious to trust business in Bermuda,? Mr. Burgess said in a ministerial statement.

?It is with some trepidation that I have abandoned the compulsory registration scheme. However, should the passage of time reveal that the less intrusive form of information-gathering provided for in the new bill is ineffective, the Government will not hesitate to return to this Honourable House with stern measures along the lines of the Trusts of Land in Bermuda (Registration) Act that is to be withdrawn today.?

Mr. Burgess told MPs that some parties had raised concerns about the land trust register idea, prompting the Minister to invite them to air their views.

?In response to my invitation, stakeholders including the Bank of Bermuda, the Bermuda Bar Association, the Bermuda Association of Licensed Trustees and the Society of Trust and Estate Practitioners (Bermuda) made submissions setting out their views on the proposed legislation and offering proposals whereby they might be modified,? Mr. Burgess said.

Labour and Immigration technical officers joined Mr. Burgess in a meeting with concerned parties on January 22, with UK trust legislation expert James Wadham providing support for the Government team.

?After reflecting on the input received from these bodies and after much deliberation, I , supported by my Government colleagues, came to the conclusion that the public would be better served by a simplified regulatory regime,? Mr. Burgess said.

Key information-gathering powers proposed in the scrapped bill had been merged into the new bill, the Bermuda Immigration and Protection Act 2007, he added.

Government would not waver on its policy to ensure ?the preservation of Bermuda?s land bank for future generations of Bermudians?, Mr. Burgess said.