Kempe On Economic Substance Act Policies

January 13, 2019 | 25 Comments

“While the One Bermuda Alliance totally supports Government efforts to encourage companies affected by the EU Substance Act to remain and invest here, it should be noted that nothing announced by the Finance Minister recently was new,” Shadow Finance Minister Nick Kempe said.

Senator Kempe said, “The Act may cause some companies to move but it also presents an opportunity to create jobs for Bermudians as companies have to show increased economic substance here. Any increase in jobs for Bermudians is something the OBA welcomes and whole-heartedly supports.

The Minister’s press conference held on the Economic Substance Act on Jan 10:

“International business relocating jobs here will also undoubtedly involve more guest workers and it is good to see Government taking a pro-business tone with policies that highlight the positive effect of guest workers to our economy as opposed to demonising them with divisive rhetoric.

“The work permit policy referenced by the Minister was put in place by the OBA in 2012, the payroll tax relief he mentioned was rolled out last May for existing medium and large businesses relocating jobs to Bermuda and his statement also simply confirmed that closed categories will remain closed.

“So while we support these efforts, we believe they could have been rolled out and promoted months ago in line with, or in the lead up to, the tabling of our Substance Act. It is disappointing that we have missed out on precious months of business development.

“In addition, the bundle of existing policies mentioned by the Minister were made to attract new jobs from overseas, but they will only ever truly work if comprehensive immigration reform is advanced, and quickly.

“Seeing that Government has seemingly advanced OBA economic-immigration policy introduced to attract sorely needed foreign business and direct inward investment, how long until the PLP publicly recognise the need to fully address immigration reform in order to anchor the job creators?

“The effects of the Act do pose a threat to Bermuda but also open up enormous potential to increase employment. Cayman has signaled its intent to try and take advantage and this Government must do the same. It has to do everything it can to create new jobs and reverse the disappointing trend we’ve witnessed in business confidence and economic performance since the election.”

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Comments (25)

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  1. Red rose says:

    It is true – nothing new from government. I just do not understand why they are so downbeat? As kempe says – we could get new jobs from this – probably a lot more than fintech

    • nose says:

      Keep mouth shut oba/UBP drone. Last I checked this new 2019 oba/UBP party indicated that they did not listen or communicate to the people. Thus the very reason they lost the election. Craig Trump is your leader and you can’t honestly believe he is much smarter than former leader Dunkely. The voters know that Craig is only a surrogate and nothing more.

      • sandgrownan says:

        PLP. No ideas, no clue. Looks like they take others ideas too.

        LOL

      • Johnny B says:

        Nose you are correct. PLP is doing an amazing job. School are doing great. I am saving more money through all of these tax revisions. My Bitcoin stock is thriving, and the unemployment rate is fantastic.

      • wahoo says:

        Would you care to explain what you mean by surrogate?

  2. DeOnion says:

    I am glad the oba is alive to the possibilities. problem is that the plp has tied itself in knots with its election slogans.
    Feel good election slogans do not create jobs though

  3. Rebecca Smith says:

    As long as the additional foreigner workers don’t pull a Tweed and try to get involved with our politics I’m all for it. Tweed is NOT Bermudian and has no right meeting with our premier to discuss politics in Bermuda.

    • Johnny B says:

      Churches has no place in politics and government.

    • wahoo says:

      Tweed is actually working outside of his work permit in addition he should have trained a Real Bermudian how to do his job by now. Meanwhile I am listening to ministry ads asking for anonymous tips to be called in so they can investigate breaches of work permits.

  4. Vote for Me says:

    From the 9 business leaders present at the press conference, it would appear that the ‘score’ is 9 to 1 in favour of what the Minister announced.

    Following from the press conference, Bermuda already has in place appropriate measures to convince companies to fully operate from Bermuda as opposed to some of our competing jurisdictions.

    For example, the companies would automatically get 5 work permits for persons that would occupy jobs that are not in closed categories. They would also take advantage of the payroll tax relief for employers for a specified period. The other benefits of natural beauty, good infrastructure, friendly regulatory environment, excellent intellectual capital, excellent legal environment and readily available accounting, legal and banking services coupled with airline connectivity and close proximity to the US are already understood to be positive components for operating from Bermuda.

    Kempe also comments that the OBA put the business permits in place when they were in government – good for them. Bermuda is collectively thankful.

    Given the invitation from the Minster, perhaps Kempe would be well advised to call the Minister and offer any constructive comments or suggestions. It is time to stand for Bermuda when we are threatened by the EU, OECD, US and other regulatory bodies that seek to destroy the Bermudian economy and move away from petty partisanship comments.

    • DeOnion says:

      Those 9 business leaders were also totally silent and were there, no doubt, at the request of the Minister for what was, in essence, a photo op, nothing else.

    • Not exactly says:

      From the various statements, it would seem that Kempe met with the Minister and did offer suggestions. Seems that month(s) passed and the PLP had still not rolled out any incentives. I can’t blame Kempe for going public to make sure Government acts to protect Bermuda’s interests.

  5. 2 Bermudas says:

    Pee El Pee are masters at politics. You and the OBA could learn a thing or two from them!!

    • Johnny B says:

      What how to take the debt from a few hundred thousand into the Billions? Or how to Tax the people who are suffering already?

  6. Joe Bloggs says:

    We should advertise the fact that we have 19% income tax (called Payroll Tax) to those who would call us a “tax haven”. That might help too.

  7. watching says:

    What did the OBA do in 5 years to incentivize companies to establish or create more jobs in Bermuda?

    • Double S says:

      Issue the work permit policies that the PLP is using now to entice companies to set up shop in Bermuda. The very same ones that you and your crew screamed as being anti-Bermudian.

      They also passed legislation to allow foreign companies to purchase real estate. The same one that the PLP used to allow Arbitrade to buy a building in town. The very same policy that you and your crew screamed as being anti-Bermudian.

      Shall I go on?

    • sandgrownan says:

      Go look it up. Don’t be so disingenuous (or stupid).

    • Jus' Wonderin' says:

      Where’s the jobs the PLP have created so far…I’ll wait lmfaooooo

    • question says:

      Didn’t they make an attempt to sort out the immigration injustices? All met with protest, blocking of Parliament, and various other foaming at the mouth responses. Of course.

      And the airport. Jobs have been created there.

      And AC35. The economy got a huge boost there, which created jobs generally.

      And the BTA success, which creates and saves tourism jobs.

    • Toodle-oo says:

      They didn’t make any hateful xenophobic and racist statements and acted in a business like manner. Not like people out to get revenge and make others ‘uncomfortable’ .

    • deonion says:

      Two things in reply: the OBA concentrated on reducing the debt repayments, which was crucial to Bermuda’s survival, it did create jobs – hotels/airport etc. it is to the PLP’s shame that for purely political reasons it did not build on the AC legacy which could have created more jobs.

    • Not exactly says:

      Remove term limits, Job Makers Act (same one Min dickinson just used for EU Substance “Programme”), re-establish Business confidence, reverse trend of year on year deficit increases, America’s Cup, Tourism Investment Act, remove politics from tourism with Bermuda Tourism Authority, airport project, Loren, St Regis, Morgan’s Point…

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