A former Premier yesterday backed an overseas businessman who warned that time limits on work permits could sound the death knell for money-spinning international business.

And he called on other top overseas business figures to speak their minds on Government policy.

Businessman and long-time United Bermuda Party leader Sir John Swan spoke after William Williams, chief executive officer of STW Fixed Management described recently-announced work permit policies as "chilling'' in a letter to The Royal Gazette .

Mr. Williams said that his business, and others, would "always prefer an equally competent Bermudian over someone from elsewhere''.

But he added that a "get-out-of-town'' policy on new work permits would hinder firms in recruiting international-standard employees for some positions -- forcing companies to locate workers elsewhere.

Sir John said: "Mr. Williams should be commended for his straight talk as a non-Bermudian and one who demonstrates the value of speaking up without fear or favour.

"This needs to be said by more people in our free, democratic society so people know the consequences of decisions which are made.

"Things like this are far-reaching -- even if its only perceptual -- in the minds of people, particularly those who are running businesses, especially those from overseas.'' And Sir John warned: "The view being taken is that Bermuda is no longer going to accommodate the requirements in an expeditious and professional way of these businesses.

"The end result will be -- as Mr. Williams said -- that we will not see an exodus overseas. What we will get is a quiet wind-down of some of the work done here if people can't get the work done that they want.'' And Sir John said that would hit ambitious Bermudians' hopes of a high-flying career, as well as drain the public purse of revenue needed to keep up spending on social services and education.

Home Affairs Minister Paula Cox recently announced a new deal on work permits -- including maximum time limits, although with special consideration for essential personnel -- and a fee ladder for successive renewals.

Development and Opportunity Minister Terry Lister also introduced a new reporting system where employers with more than ten workers will have to fill in comprehensive forms on the ethnic make-up of their workforces every year.

The system is designed to promote racial equality and attack discrimination -- with fines of up to $5,000 for firms which fail to provide information to the Commission for Unity and Racial Equality (CURE).

Remember what happened with tourism, warns Sir John Sir John said: "The CURE announcement is suggesting they're going to change the racial composition of the employment environment in Bermuda.

"The racial component has changed and will continue to change. But we must offer competent people, put money into education and work with the business community.

"A mandatory policy -- or suggestions of a mandatory policy -- is not the way to do it.'' Sir John added that last summer's hikes in Land Tax charges also hit landlords and business tenants and the cost of the new national pension scheme also needed to be taken into account.

And he warned that the long-term decline in the tourism industry should strike a warning note in the international business arena.

Sir John said: "I would commend Bermuda as a whole to remember our history in tourism and not let it happen to international business.'' He added: "I wish more people would speak up and let it be known what will take place, not in a threatening manner, but to let their views be known at the level of management where the people in charge say something.'' Sir John Swan GOVERNMENT GVT