The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamian financial services industry is fearful it may be “targeted next” by the Immigration Department, amid concerns that the work permit crackdown has created a “disconnect” with this nation’s ‘international business centre’ image.

Bryan Glinton, an attorney and partner with the Glinton, Sweeting, O’Brien law firm, told Tribune Business that the Government’s recent work permit policy statements had caused both new and existing investors to hold off on planned projects.

He revealed that the Immigration/work permit issue “was a large part of the discussions” that took place at a Bahamas Financial Services Board (BFSB) conclave this weekend featuring 50-60 industry representatives, all concerned about the “uncertainty” the Government’s policy had created.

Another top Bahamian financial services executive who attended the meeting, speaking on condition of anonymity, told Tribune Business: “One area of concern was the disconnect over the Government’s actions in relation to Immigration, and on the other hand saying the Bahamas is an international business centre.”

The fear here is that the Government’s tightened work permit policy stands at odds with the Bahamas’ drive to position itself as ‘open for business’ to the world, as it raises the possibility investors - both Bahamian and foreign - will be able to hire the skilled expatriate staff to make their projects ‘work’.

Indications that the ‘work permit policy’ uncertainty has spread to the Bahamian financial services industry, the second largest sector in the economy, will be troubling for the Government.

The implications are that sector players and their clients may hold back on any growth and expansion plans, further stifling economic recovery.

Speaking with this newspaper yesterday, Mr Glinton said: “There is a growing concern on what does it all mean, the Government’s position of a more aggressive policy that was taken on Immigration matters.

“What will be the negative impact of all this?....... People are surprised by what has recently happened, and the question is: Is financial services going to be targeted next? No one knows, and that’s the uncertainty and concern we see out there.”

Mr Glinton added that it was impossible for the Immigration Department to know every industry’s labour and skills requirements, especially a “specific and unique” sector such as financial services. As a result, it was “incumbent” on the Bahamian private sector to educate both it and the Government.

“I think there is a lot of concern and uncertainty,” the attorney added. “Whether that investor is a new investor or an existing investor wanting to make further investment, what has happened is not good for business.

“If you create uncertainty, there’s going to be a hold back on capital. This is not a political issue, it’s a business issue. When you create an environment of uncertainty, investors are not prepared to put capital at risk.

“It’s not rocket science,” said Mr Glinton. “You have to be careful you are not causing alarm for investors interested in coming to the Bahamas, or interested in expanding businesses in the Bahamas. At the end of the day, they require certainty.”

Pointing out that it was the private sector that drove job creation in the Bahamas, Mr Glinton told Tribune Business that he backed the ‘Bahamianisation’ policy, but not at all costs.

“Bahamianisation for me means creating opportunities for Bahamians,” Mr Glinton explained, adding that the policy had to strike the right “balance”.

“It’s incumbent on our society to prepare and educate Bahamians for opportunities that exist in the 21st century,” he told Tribune Business. “Part of that process means ensuring they have the tools, and are equipped, to take on those opportunities.

“If they don’t have the skills set, we can’t say Bahamians should have that particular position. It’s just not realistic.”

Mr Glinton added: “For politicians and the Government there is a balance, and the balance they have to strive to achieve is to make sure there are opportunities for Bahamians, and to make sure the opportunities out there are not given away to foreigners where there are qualified Bahamians.

“At the same time they have to balance that with a policy that does not cause concern, and make Bahamians are equipped with the right skill set.”

Mr Glinton said that as a businessman, he “wants to hire Bahamians over foreign persons’, simply due to the $10,000-$12,000 work permit fees involved in employing the latter.