The Tribune

By NATARIO McKENZIE

Tribune Business Reporter 

nmckenzie@tribunemedia.net

THE Bahamian Contractors Association’s (BCA) president yesterday said he would gladly back a ‘200 per cent’ increase in work permit fees for unskilled foreign labourers employed in the sector.

Leonard Sands told Tribune Business there was no justification for employing unskilled foreign labour in the construction sector, as this was effectively taking away the easiest job opportunities for young Bahamian men. 

“If that is done I would certainly applaud it. Having less persons, unskilled foreign labourers coming into the construction sector could certainly facilitate more opportunities locally,” Mr Sands said. 

“The fees on those permits should certainly be increased. They should increase it 200 per cent, absolutely. There is nothing that a foreign unskilled labourer could do that I could not find a young kid just out of high school to do. I think that if you make the permit fee harder to come by you could reduce the amount of persons making applications for general labourers.”

The BCA president added: “If that was the thinking 30 years ago, we wouldn’t see the sector in the state it is in now. There are too many permits for general labourers and it is taking away the easiest opportunity for young men to be employed and giving that opportunity to foreigners.”

Brent Symonette, minister of financial services, trade and industry and Immigration, revealed the Minnis administration’s planned work permit fee increase - the first for a decade - in the House of Assembly on Monday. 

“We will be making an official announcement coming July 1,” Mr Symonette said. “Immigration fees will increase. These have not been increased since 2008. We will publish a full listing of those fees.

“I will say that one of the areas affected is the lowest level, which has been $1,000 for a work permit. That will be going to $2,000 for a work permit.” Jobs such as construction helper, deckhand,  farm labourer, gardener,  general worker, handyman, kitchen helper,  janitor and live-in maid are all at the lower end of the work permit fee schedule.

Mr Sands said yesterday that the construction industry has ‘flatlined’, with little infrastructural activity currently taking place in the Bahamas. “There is very little work in Nassau, which is very competitive,” he added. 

“We need to see some activity, some infrastructural projects to get going right now in in order for people to be excited.  The industry has flatlined. Right now there are not a lot of work on projects employing locals en masse. We just have to wait and see.”

The Government’s planned work permit fee increases appear to have divided the private sector, although the full schedule of changes has yet to be revealed to the public.

Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, reiterated his concerns and called for more information and consultation by the Government.

“While we understand the Government’s desire to increase revenue and offset spending, deficit and debt, we continue to encourage leaders to prioritise fiscal reform and responsibility measures to get national spending in line with global debt-to-GDP norms,” said Mr Myers, ORG’s council chairman and co-chair of economic development.

Citing weak GDP growth over the past few years, ORG warned that increasing work permit fees could exacerbate the cost and ease of doing business, an issue the Government has recognized as a hindrance to growth and publicly committed

“The companies least likely to absorb fee increases are small and medium-sized local business (SME) which are widely credited with being the primary driver of economic growth and stability,” Mr Myers added in a statement. 

“This change could make it harder for these SMEs to grow their business, especially if they cannot find certain specialised skills within the local workforce. However if the cost/ease of doing business continues to be an issue we will all feel it, as it will ultimately deter foreign direct investment, affecting our regional competitiveness and our GDP.”

Calling for a better link between Immigration and Labour, Mr Myers added: “Why not use work permit and Immigration reforms to incentivise businesses to educate their workforce? Especially given the current skills gaps issues being reported by the private sector.

“The public education system currently is not providing the majority of young adults with the education and skills required to enter the job market. Immigration and labour policy could be a tool to create opportunities and incentives for businesses to train staff and to get involved in improving public education through participation in technical, vocational and apprenticeship programmes at the high school and post-secondary levels.”