The Association of Bermuda International Companies (ABIC) has made an initial response to the Budget Statement released by the Government of Bermuda – noting that further analysis and opinion will follow after the report can be addressed in greater detail.

“We consider the Budget Statement , as one would expect from Minister of Finance Paula Cox , to be a clear expression of Government’s intent and plans for the future, and ABIC and its members are supportive of the underlying theme of the document, which is that ‘doing good is more important than doing well’,” said ABIC Chairman David Ezekiel.

“Against this backdrop, however, we would urge the Minister to continue with strong budgeting controls, so that we do not have costs simply rising to match the ever-increasing revenue from this healthy economy.”

ABIC noted that the Budget Statement provides a picture of a thriving economy, with revenue in 2007 expected to increase from $856 million to $917 million – well above the rate of inflation – to fund many of the programmes outlined by the Government.

Payroll tax revenue, much of it from ABIC member companies, is expected to amount to just under $300 million in the year ahead.

Mr. Ezekiel said ABIC was encouraged by the budget’s focus on education, and by Government’s statement that resources to improve delivery of service by the Ministry of Labour & Immigration have been included.

“We firmly believe that many of the problems and frustrations being experienced within the community have their root in deficiencies in the education system, particularly in the public sector, so we continue to support a strong focus on education.

“We are encouraged by the commitment made by the Minister of Education, Hon., Randy Horton, to put procedures in place which will hopefully lead to a widespread improvement in the quality of education provided on the Island. We also are extremely supportive of all initiatives directed at ensuring that Bermudians, and particularly black Bermudians, are provided with full opportunities to rise to the higher levels of management, both in the local and in the international business sectors,” he said.

“We also note from the Minister’s statement that much of the allocation provided to the Ministry of Labour & Immigration is to be used to deliver a long-promised improvement in the delivery of services to its customers.

“We cannot stress strongly enough the importance of this being done and being done quickly. Our members continually advise us that dealing with the Department of Labour & Immigration in relation to work permits, term limit exemptions, visitor permits and the like is the biggest challenge facing them as they try to operate efficiently in the Bermuda environment,” he said.

“Again, we are encouraged that the Minister, Hon., Derrick Burgess, has given us a commitment that we will see improvements in the approach and response time sooner rather than later.”

While ABIC is not supportive of any tax increases during this time of a fast expanding revenue base on the Island, Mr. Ezekiel noted that the increase in the salary cap for purposes of calculating the payroll tax , whilst impacting on a number of decision makers in the International Business arena , is not likely have an appreciable impact on most Island businesses. However, any addition to the cost of doing business in Bermuda, he said, should be viewed with caution.

“Bermuda is already seen as a high cost domicile, and any measures that put pressure on the cost for businesses or their employees should be avoided as far as possible,” he said.

“ABIC re-states its commitment to work with Government to further the success of Bermuda as a business domicile, all the time keeping in mind that our role in Bermuda extends way beyond dollars and numbers, as we strive to make a positive impact on the community.”

ABIC, the voice of International Business, represents more than 130 international companies incorporated in Bermuda.