The latest Archer report for 1995 shows that just five percent of Bermudians in the work force were employed by international business.

But Finance Minister, Grant Gibbons, said last week that his calculations put the figure at 6.9 percent. And he said that it was important to understand that Dr. Archer pointed out that international business maintained almost 6,500 jobs in the country and severely influenced an additional 6,300.

But the report also noted that more than 40 percent of those working for international companies are foreign born, comprising nearly 13 percent of the foreign-born work force.

Of the Bermudian workers, just 23 percent were male. Among non-Bermudians, the number rises to 67 percent.

Only 23.6 percent of the Bermudian employees are employed as managers and accountants, compared to 68.4 percent in the case of non-Bermudians. Bermudian workers were preponderant in occupations such as bookkeepers, secretaries, typists and clerks.

Dr. Brian Archer estimated that 17,000 business travellers visited international companies and Bermuda International Business Association (BIBA) members during last year here, and brought along a further 14,000 friends and relatives.

The International Companies Division (ICD) of the Chamber of Commerce spent $9.3 million on their hospitality, and BIBA members spent an additional $1.2 million.

Dr. Archer said their remaining expenditure of $25 million created some $29 million of income, $7.4 million of public sector revenue, occasioned some $20 million of imports and helped to maintain 190 jobs.

In 1995, the largest single group of international companies here were investment holding firms (37.2 percent), while insurance related firms made up 17.6 percent.

In fact, investment holding firms grew during the period 1987 to 1995 by 76.3 percent.

Yet the largest growth has come from mutual fund companies, which increased 184.6 percent, while substantial growth, some 76.2 percent, has occurred in what the report labels "other management and consultancy companies''.

Natural resource companies grew 62.3 percent and, until 1994, shipping companies grew 31.9 percent. Commercial trading companies declined by 15.8 percent, but exempted partnerships rose from 82 in 1987 to 260, some 217 percent.

The report notes that with reclassification of some categories, care has to be taken in the interpretation of the data.

But the number of international companies rose 40 percent, from 6,553 in 1987 to 9,180 in 1995.

The number of companies with a physical presence totalled 274 during last year, 164 of which were registered as members of the ICD at year's end.

The Employment Survey carried out last year in August recorded 262, while between 195 and 274 paid payroll tax during various periods of the year.

Insurance related companies accounted for 43.5 percent of those with a physical presence. Finance companies represented 12.6 percent, trading companies 11.5 percent and shipping companies five percent.

The direct contribution made by the trading activities of international companies to the Bermuda economy includes: $527 million to invisible exports; $244 million to business activity among Bermuda companies, including utilities but excluding pension deductions; $51.6 million to public sector revenue, including pension contributions of $5.2 million; $255.7 million in incomes (salaries and benefits) including non-Bermudians, plus $5.7 million in scholarships; and 2,399 jobs.

The $527 million spent in Bermuda by international companies formed revenue to Bermudian companies, the public sector and household income.

Dr. Archer concludes that the vast majority of this money was re-spent on the Island, generating additional revenue, income and jobs.

During the year, $143.7 million of the $527 million spent by international companies was paid as professional and bank fees, mainly to BIBA companies.

Bermuda banks earned $180.3 million net foreign exchange from all sources, not counting receipts by the overseas subsidiaries and associates. Some $55.5 million were in the form of professional and bank fees paid by international companies.

The included foreign exchange, investment fees, interest fees and other fees.

Local currency sources earned an additional $54.9 million.

Other BIBA companies providing accounting, financial, legal, management and insurance management services received $96.3 million in foreign currency earnings, of which $88.2 million came from international companies.

BIBA member companies paid $166.5 million in wages, salaries and benefits, together with another $133 million in other expenditure, including capital expenditure, in Bermuda.

Apart from the $143.7 million paid as professional and bank fees, international companies spent a further $383.3 million here, such as $255.7 million for wages, salaries and benefits; $21.5 million for office rentals; $17.2 million for communications; $19.6 million in capital expenditure; and, $52.9 million in utilities, services, purchasing of goods, expenditures on business visitors, scholarships and other contributions.

The public sector received $46.4 million, including land tax, but excluding pension deductions.

About $443.4 million or 84 percent of this expenditure was created by firms with a physical presence here.

Dr. Archer summarised that expenditure locally by international companies and their business visitors accounted for $552 million. And some $75 million worth of imports were needed to service the companies and their visitors and a further $381.6 million of imports were needed to satisfy the demand from Bermudian households.

The net effect to balance of payments, he said, was then $95.5 million.

With all the secondary effects taken into account, the international companies and their visitors in 1995 contributed just over $200 million to the public sector.

They created about $750 million of income in Bermuda, of which $225.7 million was direct income. he industry also maintained 6,500 jobs in the country and severely influenced a further 6,300.