Cayman Intend To Suspend Term Limits

[Updated with Premier Cox's comments] Cayman Islands Premier McKeeva Bush said Wednesday [Sept.14] that he would ask Cabinet to temporarily suspend Cayman’s term limit on foreign workers’ residency. Mr. Bush said the proposal would be to suspend the term-limit requirements for up to two years to allow for a comprehensive review of the policy.

A fellow British Overseas Territory, the Cayman Islands has a similar population size to Bermuda and also earns income through the international business sector.

The Cayman News Service reports that Premier Bush told the Legislative Assembly, “It is my opinion, as Minister for Financial Services with responsibility for economic development, and it is also the view of the government, that the policy needs to be re-examined.”

“There was time when the Cayman Islands had many more persons from overseas in our workforce,” Mr Bush stated. “Very few of our people were unemployed during this time.”

“Many of our young people were able to establish their own businesses and to have a place in the growth of the country. Unfortunately, some of these local businesses have had to close and others are experiencing very pressing financial difficulties.”

He said people had thought rolling over qualified and trained persons would create opportunities for Caymanians but that hasn’t happened. “Many of the persons that were rolled over took up positions in other competing jurisdictions. The lack of their skills was correspondingly felt here, as we failed to gain the economic activities that would have created additional employment for us.”

Cayman’s Opposition Leader Alden McLaughlin said, “While I welcome the fact that the government is finally turning its attention to this some 28 months in office, I am very concerned, very worried about the way they are going about it.”

“We need to be replacing the sections of the law which are problematic, which are giving concern rather than suspending them and creating a void.”

“What we can’t revert to is the old system where people are allowed to stay here indefinitely with no form of security of tenure, where children are born here without being able to become Caymanian,” Mr. McLaughlin said.

Premier Paula Cox said, “The benefit of the Bermuda immigration model is that it is dynamic and this move by Cayman highlights the flexibility of our policy. Our approach differs from Cayman as they embedded their rollover policy in law, so it lacks the nimbleness of the Bermuda model which is a policy, not a law.

“In our model the Government can identify any additional carve outs such as the 10-year work permit and the incentives for job makers while continuing to keep the promise to Bermudians that we will not create additional long-term residents. This resonates further at this time when the Minister can send people home when their term limit expires to free up jobs for Bermudians. In addition, as work permit holders at lower pay scales cannot bring their families, many do not have an interest in settling in Bermuda.”

“It should be noted that persons in key positions are granted waivers and we do facilitate those that cannot afford to recruit from overseas by granting extensions.”

“I do not think that Cayman’s actions alone on this front make Bermuda less competitive. The way they process work permits and the cost of work permits has always been a problem for them. For example, our charge of $20,000 for a 10-year work permit is less than what their fee is for an executive for one year ($25,000).”

“Their turnaround time for the processing of a work permit is far longer than our turn-around time. They have only started addressing the fast-tracking of work permits. Additionally, their fee structure is quite complicated. Businesses also have to pay annual fees. Our plans to provide 10-year permits and incentives are way ahead of them. Even the client base is different (more hotel workers, etc.).”

“As long as we continue to be sensitive to the needs of our clients and to practice the red carpet approach then we will continue to attract business.”

“We continue as a Government to implement initiatives that are friendly to business. New International companies continue to chose Bermuda as their business domicile. Bermuda is and will continue to be open to and open for business,” concluded Premier Cox.

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Category: All, Business