Burchall: Brother Territory In Trouble?
[Written by Larry Burchall]
As reported by the Jamaica Observer, the Government of the Turks and Caicos Islands is hurting. The Observer reports that TCI “Government could do well with the millions in revenues earned yearly from work permits and residency fees.” The Observer says that in TCI investments have stalled, jobs are drying up, and fewer work permits are being given to foreigners in order to save the few available jobs for Turks and Caicos Islanders, who are usually referred to as ‘belongers’.
Bermudians may recall that following an investigation into the financial affairs and governance of the British Overseas Territory, in August 2009, the UK removed Premier Mr Michael Misick and his Cabinet, and instituted a form of direct rule from London. This meant that TCI’ers or ‘Belongers” lost some control of their internal affairs and that the people that Premier Ralph O’Neal of the British Virgin Isles recently referred to as the “gnomes of Westminster” had taken over.
Bermuda is currently experiencing its highest ever National Debt levels and in 2008 and 2009, International Business in Bermuda shrank by 400 jobs. As well, construction work in Bermuda has declined and in 2009, for the first time since 2000, Bermuda’s National Workforce fell significantly; going from 40,213 in 2008 to 39,502 in 2009. This was a fall of 711 jobs and represented a 1.8 percent decline in jobs filled.
However in TCI, the fall in jobs has been greater and has had far more impact. In TCI, Work Permits issued fell from 12,000 to 8,000 for a 4,000 loss and a 33 percent decline.
Because the number of Permit workers in TCI exceeds the number of Belongers, the collecting of Work Permit fees had become a major source of TCI government revenue. In TCI, work permit fees ranged from $300 (US) for a domestic worker (maid) to $7,000 (US) for a professional (Accountant). In Bermuda, all Work Permits cost the same $650, and the Bermuda Government derives less than 1.6 percent of its revenue from Work Permit fees. However in TCI, Work Permit fees made up over 15 percent of the total government revenue.
The total 2010/11 Budget for TCI was about $212 million. The total 2010/11 Budget for Bermuda is $1,058.3 million or five times bigger. In Bermuda, the Ministries of Education and W&E consume $215 million
