Recent announcements by Bermuda companies to open offices in the Nova Scotia capital, Halifax, is a natural progression, and will be a continuing trend, ABIC Chairman David Ezekiel told The Royal Gazette.

Over the past month, a string of companies have announced plans to open offices in the Canadian to take advantage of its emerging reputation as a leading business centre.

The trend has developed as the Nova Scotia provincial government offers tax breaks to financial services firms to counter a brain drain and offset declines in its traditional industries. Halifax has three universities, and a pool of highly-skilled workers. It is also in the same time zone as Bermuda.

Companies to move into Halifax so far include hedge fund administrator Olympia Capital, Butterfield Bank, reinsurer Flagstone Re and New York-based Citco Group, which has an office in Bermuda. Bermuda-based West End Capital is also planning to establish an office in the city. Up to 1,000 new jobs will be created in Halifax as a result of these moves, most of them in accounting or fund administration.

“There are limited resources here in Bermuda, so the ability to outsource is a huge positive for the island,” said Mr. Ezekiel. “Every operation as it gets more mature starts building up a system of processing which becomes very routine and standard. That routine work can be done elsewhere yet we retain the customers. This means businesses can continue to grow.”

“The Canadian port city will likely not become a competitor to the island,” he added.

“The sort of business that comes to Bermuda is innovative and needs a lot of talent on board to keep going. It needs a certain kind of legislation and structure, which we have in Bermuda, and that is not going to stop.”