Island's highest foreign revenue earner.

Mr. David Lines, chairman of the International Business Forum, said the sector had come a long way since the Government-initiated Forum was set up in the fall of 1990.

"The Forum's genesis was an objective by the Ministry of Finance to increase the contribution of this sector to an amount which equals that of the tourism sector,'' said Mr. Lines.

"At that time, the contribution was split approximately 60/40 in favour of tourism.

"It is now closer to 50/50 as the worldwide recession has dramatically slowed tourism, underscoring the need for lessening our dependence on that industry and making accomplishing our goals even more important than before.'' Mr. Lines was speaking at the AGM of the International Companies Division of the Chamber of Commerce, at which he outlined the importance and success of the Forum.

The Forum was set up as a result of greater competition from other offshore jurisdictions and an awareness that new markets, marketing approaches and products must be considered, he told guests.

The Forum determined to look at all aspects of the sector, including potential new growth areas, business development, challenges to doing business in Bermuda and examining the appropriate role of Government.

The goal was to produce a written brief on each area considered to have potential, said Mr. Lines.

"This can be used as a guideline for both Government and the private sector to realise the resources and support legislative, professional services, business development or other elements required to maximise Bermuda's success and competitiveness in that particular area,'' he added.

"For example, if a business sector is already well-established in Bermuda, such as mutual funds, the exercise is to evaluate and determine what is needed to encourage continued growth.

"New business areas for Bermuda, such as the Bermuda Exchange, would require a rationale that discusses the likely benefits and impact of such a venture and the identification of resources and support which would be required to ensure successful results.'' Other areas which were considered included -- corporate and personal holding companies, banking and insurance services, negotiation of trade agreements, shipping, trusts and trust companies, aircraft registration, foreign sales corporations, OECD extension and international legal partnerships.

Mr. Lines thanked the Insurance Advisory Committee, the International Companies Division of the Chamber of Commerce, Government and the Bermuda International Business Association for their help in the process.

He said: "Over the last 18 months, a mountain of recommendations by the 27 to 30 sub-committees has been developed and is just now being circulated to the International Business Forum for approval and implementation.

"The benefits to this community for the next decade will be, I am satisfied, enormous.

"The community owes a debt of gratitude to all of those people and their firms who have contributed to this process.

"The value of this time, if it were to be valued at a moderate rate, would be enormous and probably amount to several million dollars.'' In addition, BIBA companies agreed to raise their annual subscription by more than ten-fold.

Mr. Lines added: "The competition would love to have sight of the reports which have been prepared but they are ours to implement and benefit from.'' Some of the proposals are already being put successfully into practice, he said.

For example, Bermuda has been identified as an ideal area for international arbitration and arrangements have been made for a "no hassle'' procedure for arbitrators and their legal advisors to do their work in Bermuda.

Other measures include a more active and proactive marketing approach for the insurance sector, supported by both Government and private companies and the simplification and publication of immigration regulations regarding the advertising of posts and the duration of work permits for foreign workers.

Mr. Lines added: "With the closure of the Canadian Base, the reduction at the US Base and the exit of a number of non-Bermudians, the contribution to foreign earnings will be impacted.

"For instance, the rental market is already suffering with an estimated 1,500 to 2,000 rental units vacant. These reductions will further impact on that market.

"To the extent possible, all of us in the International Business Forum believes that everything possible must be done to further encourage this sector to grow in order to create revenue and employment, as well as increase rental demand.'' Due to steps first take two years ago, "the community will, I believe, benefit for decades to come'', he said.

MR. DAVID LINES -- Chairman of the International Business Forum.