Bermuda must do everything it can to improve its economy in 2010 in the face of competitors trying to attract more business.

That is according to Shadow Labour, Home Affairs and Public Safety Minister Michael Dunkley, who was speaking in the wake of news that the Cayman Islands is considering giving immigration incentives to attract and keep foreign firms.

The British overseas territory has seen a drop in the number of foreign companies located there during the global recession and has begun to offer more flexible and attractive immigration regulations.

On the table are fast-tracked three to five year work permits, as well as assurances that senior positions in investing companies will be able to bypass the regular seven-year time limit for foreigners.

Also in the works is draft legislation that gives wealthy individuals the right to live and work in the Caymans for 25 years if they make a business investment of at least $2.6 million.

According to Mr. Dunkley, it was not surprising to hear what the Cayman Islands are doing to try and keep as well as attract new business.

He said there were similar recommendations in the recent Bermuda First report, which included input from some of Bermuda's top business executives and politicians, including Premier Ewart Brown.

The report recommended waiving term limits and work permits for certain expatriates as a way of strengthening the economy.

And it also suggested that generous multi-millionaires be allowed to reside on the Island so they could bankroll projects such as a new hospital and help fund charities.

Mr. Dunkley added: "This report which received widespread community input has not been given the critical review it deserves as there are many good initiatives that have been suggested in its contents.

"The thorny issue of term limits have caused the Bermuda Government and Bermuda-based international companies much concern since its inception. The global economic crisis has not only threatened our economy, but that of our competitors.

"As jurisdictions like Cayman go out of their way to shore up their economy, so must we look at where our bread is being buttered. Next year promises to be another very challenging year in light of the forecasts that Bermuda will still feel real softness in some of our core businesses.

"We need to do all we can to retain the business we currently enjoy, but also to attract new business to help fuel our economy and while we do this we need to make sure Bermudians have the opportunity to be educated and trained for employment in these areas."

He added: "We have tabled the Bermuda First report for debate when Parliament reconvenes in February. And this matter is one area that will get immediate attention unless Government moves before that time to consider."

According to Bermuda Democratic Alliance member Donte Hunt, the Cayman plan is something worth looking at. But he believes Department of Immigration has already made "vast strides" in their own right to turn work permits around very quickly.

"It is our understanding that the Department is working closely and quite successfully with the international business sector to find the right balance in terms of encouraging growth of international business and protecting the jobs of Bermudians," said Mr. Hunt.

"In fact some of what has happened in Cayman has happened here. With Bermuda relying so heavily on international business for income and employment of locals given the staggering collapse of tourism, it is important to get it right."

Mr. Hunt said the Bermuda First report outlined ways for Government to ensure Bermuda remains a premier jurisdiction. This included recommendations to launch a public education campaign teaching Bermudians about the benefits of international business and gave suggestions on ways to further diversify Bermuda's economy.

He said: "The Alliance supports exploring and implementing at least the majority of recommendations contained in the report. Simply tinkering with immigration rules is not enough in a changing financial environment."

Labour, Home Affairs and Public Safety Minister David Burch had no comment yesterday.

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