Securing work permits, term limit exemptions and visitor permits from the Department of Labour and Immigration is the biggest challenge faced by international business in Bermuda.

And the leader of the Association of Bermuda International Companies (ABIC) is urging rapid improvements to be made to remedy that situation.

There should also be extreme caution shown towards any move to increase the tax burden faced by international business in Bermuda because the Island already presents high costs to companies located on the Island.

Those are two key points expressed by ABIC chairman David Ezekiel, who has generally welcomed the Budget unveiled by Finance Minister Paula Cox a week ago today.

?We note the Minister?s statement that much of the allocation provided to the Ministry of Labour & Immigration is to be used to deliver a long-promised improvement in the delivery of services to its customers,? said Mr. Ezekiel. ?We cannot stress strongly enough the importance of this being done and being done quickly. Our members continually advise us that dealing with the Department in relation to work permits, term limit exemptions, visitor permits and the like is the biggest challenge facing them as they try to operate efficiently in the Bermuda environment.

?Again, we are encouraged Minister Derrick Burgess has given us a commitment that we will see improvements in the approach and response time sooner rather than later.?

In its initial Budget response the ABIC repeated it is not supportive of any tax increases ?during this time of a fast-expanding revenue base on the Island.?

The raising of the payroll tax cap from $235,000 to $350,000 will impact high level executives in the Island?s international business sector but is not likely have an appreciable impact on most Island businesses according to Mr. Ezekiel.

However, he warns that any addition to the cost of doing business in Bermuda should be viewed with caution. ?Bermuda is already seen as a high-cost domicile, and any measures that put pressure on the cost for businesses or their employees should be avoided as far as possible,? he said.

On other aspects of the Budget, Mr. Ezekiel commented: ?We consider the Budget Statement, as one would expect from Minister of Finance Paula Cox, to be a clear expression of Government?s intent and plans for the future, and ABIC and its members are supportive of the underlying theme of the document, which is that ?doing good is more important than doing well?. Against this backdrop, however, we urge the Minister to continue with strong budgeting controls, so that we do not have costs simply rising to match the ever-increasing revenue from this healthy economy.?

ABIC noted the Budget provides a picture of a thriving economy, with revenue in 2007 expected to increase from $856 million to $917 million ? well above the rate of inflation ? to fund many programmes outlined by the Government.

Payroll tax revenue, much of it from ABIC member companies, is expected to amount to just under $300 million in the year ahead. Mr. Ezekiel said ABIC, which represents more than 120 international companies incorporated in Bermuda, was encouraged by the Budget?s focus on education. He said: ?We firmly believe that many of the problems and frustrations being experienced within the community have their root in deficiencies in the education system, particularly in the public sector, so we continue to support a strong focus on education.

?We are encouraged by the commitment made by the Minister of Education Randy Horton, to put procedures in place which will hopefully lead to a widespread improvement in the quality of education provided on the Island.

?We also are extremely supportive of all initiatives directed at ensuring that Bermudians, and particularly black Bermudians, are provided with full opportunities to rise to the higher levels of management, both in the local and in the international business sectors.?