The president of the Bermuda Bar Association yesterday said it will now cost international companies more to do business in Bermuda thanks to a new corporate services fee.

The fee, which is to be applied to firms handling the Island's exempted company businesses, will be passed on to clients, according to Mr. John Cooper.

Bermuda's service providers, like law firms, likely do not have "a slush fund'' ready to absorb the $400 per client annual fee announced in yesterday's 1995 budget, he added.

According to the budget statement, the fee applies to entities such as law and accounting firms which provide corporate services to exempted companies that have no physical presence in Bermuda.

The cost of doing international business in Bermuda will "go up'' and this could make the Island less competitive, Mr. Cooper said.

"Cayman Islands takes a very aggressive position on offshore business and this will put Bermuda at a competitive disadvantage to that jurisdiction,'' he noted.

This budget move is expected to generate about $2.9 million in revenue.

Mr. Cooper was also concerned about a new fee for professional organisations announced yesterday.

According to the budget, associations of professional persons will have to pay an annual fee to Government ranging from $50 to $2,500 per year for each of their members.

"There can be no doubt that professional persons who are afforded the special legislated protection of registration in order to practise their profession are in a very privileged position,'' said Finance Minister the Hon. Dr. David Saul in his budget statement.

Government will present an amendment to the Miscellaneous Taxes Act 1976 to implement this profession registration tax which is intended to take effect in January of next year.

Government predicts this will generate about $1 million.

"I'm led to believe lawyers are at the top end (of the fee range),'' commented Mr. Cooper.

If so, he calculated Bermuda's roughly 200 lawyers would generate half the anticipated revenue.

It remains to be seen if firms will pass this fee on to clients as well.