• Lawyer says Bahamas “needs to be more sophisticated”
• The liberalization of expatriate work is the key to the relaunch of Freeport
• Adds that work permit fees must be competitive
By NEIL HARTNELL
Editor-in-chief of the Tribune
A prominent lawyer yesterday warned of a “narrow approach” to work permit issuance, arguing that the Bahamas need to be “a little more sophisticated” if they are to revive the economy after COVID-19.
Robert Adams, who headed the Freeport Revitalization and Economic Expansion Committee (REEF) which just submitted proposals to liberalize that city’s work permit regime, told Tribune Business that the Bahamas in general must be “more refined” in their policies towards qualified expatriates. of the work and training of its citizens so that they end up assuming these positions.
Calling on the government to resist the temptation to crack down on work permits in times of high unemployment, such as today, he added that the fees associated with importing expatriate labor should also be assessed in terms of cost competitiveness compared to regional rivals.
While Bahamian companies pay annual work permit fees of up to $ 15,000 for high-end executives, the REEF committee report to government noted that the associated cost for expatriates in Enterprise City of the Cayman Islands, for example, was $ 1,500.
The report, released yesterday, called for “reframe transient expatriate workers as valuable sources of income, as opposed to threats to Bahamian jobs,” as well as the introduction of “new immigration regulations and policies. which are at least as attractive as those of the other available options. to investors â€if Freeport’s economy is to be revived after COVID and Hurricane Dorian.
He warned that “rival destinations, whose tourism industries have also been decimated, are looking to step up efforts to attract expats, so Freeport’s offer must also take into account the new competing incentives planned.”
The REEF committee’s proposals are to call on companies in the port area to be allowed to hire expatriate workers “as they deem necessary when Bahamian expertise is not readily available”, with approval decisions taken in the future. within five days of receipt of completed applications.
His proposals call for work permits for up to five years to be issued and made renewable, with fees “competitive” with competing free zones in the Caribbean and elsewhere. The benefits of the work permit holder would be extended to spouses, dependent children up to 25 years old and dependent parents aged 62 and over, giving them “the full right to live, work and study” .
The REEF committee also recommended that foreign workers and staff be allowed to enter Freeport for short-term visits, up to a maximum of seven days, to work on foreign-flagged vessels without the need for a work permit. .
Stressing that the committee was not calling on the Bahamas to fully open their borders, Adams said the government was right to crack down on work permits “in certain areas” where enough Bahamians with the necessary skills were available and willing to go. to do work. , although he did not name them.
“I think maybe we need to take a more refined approach to government policy when it comes to work permits,” he told Tribune Business in light of the REEF report. “There are some areas where I think a more flexible approach is needed for granting work permits – not on a permanent basis, but on a temporary basis until the local talent pool is formed.
“In order to revitalize the economy, we need to be targeted in our work permit policy. I don’t think the broad, narrow approach to immigration and work permits is the way to go. A little more sophistication is needed.
While the necessary skills and talents were available in some parts of the Bahamian economy, “others do not yet have them. We need to be more flexible and, at the same time, more consistent in the way we monitor training programs in order to build capacity and expertise so that Bahamians can take advantage of all opportunities in the country, â€added Mr. Adams.
Tribune Business understands that the government has currently done the opposite of what is proposed by REEF, and has tightened the issuance and renewal of work permits due to the high unemployment created by COVID-19.
“Sometimes the temptation is, because unemployment is high, to say that there is no work permit for anyone,†Adams told this newspaper, “but if the goal is to grow economy, we need to be more flexible if we want new businesses and growth. We need to be much more rational in our approach to issuing work permits. “
As for the work permit fees, he added: “This is another reality that we have to face. We are in competition. Freeport certainly competes with the special economic zones in the region, and as a country we compete with other countries who are all competing to attract investment to our shores.
“Our geographic location as a country helps us greatly in tourism and other industries, but that in itself is not enough to provide us with a winning presentation to investors. We have to look at other factors that come into the equation, if you will, that determine where the capital will be invested and included in what it costs to recruit workers. We have to be competitive.
Mr Adams said the issue raised some uncomfortable questions, but it was a discussion the Bahamas needed to have, although it may be difficult. “These are the kind of issues that are emotional, and rightly so because people have been disadvantaged in our country and it creates a painful feeling, but at the same time we have to take a step back and look at what we are trying to do. “, he added.
“We are trying to create a tide that lifts all boats, and we are trying to attract as much foreign direct investment as possible. Even though we might not like to admit it, we need a lot of foreign direct investment to grow the economy; a lot. We need to look at how competitive we are with countries in our region and need to compare, if not surpass, what we offer in many areas. “