The slow pace at which Immigration officials answer requests for work permits in the countryﾴs number two sector is having a serious negative impact on the growth of financial services in The Bahamas, according to a report released yesterday by the Financial Services Consultative Forum.
The Forum, headed by leading attorney, Brian Moree, was appointed by Prime Minister Perry Christie in 2002 to make recommendations on how to move the key industry forward.
The report from the groupﾴs Immigration Sub-Committee outlined problems in the Department of Immigration which in some instances reportedly deterred financial experts from working in The Bahamas.
The information contained in the report was compiled by a series of interviews with members of the Department of Immigration, and the Financial Services Sector (FSS) in The Bahamas which included, bankers, attorneys, accountants, fund administrators and fund managers.
In all, 30 people were interviewed.
ﾓInterviewees observed that they frequently send work to other jurisdictions rather than subjecting potential hires to the uncertainty of the [Department of Immigration] application process or jeopardize existing work permits for key personnel,ﾒ the report said.
ﾓThey further advised that the frustration and uncertainty of the Immigration policy and process had an inhibiting effect on their plans for growth in The Bahamas. Interviewees advised that they do not regularly develop new [Financial Services Sector] products in The Bahamas, as they do not have the confidence that they will be able to obtain work permits for the necessary foreign expertise to fully manage the same.ﾒ
The financial sector professionals also advised that there is not sufficient depth in the local professional community to assist them in the development of new innovative products. But the interviewees reported that they do not face similar constraints in jurisdictions like Bermuda and the Cayman Islands.
There were also other strong criticisms made against Immigration officials.
ﾓInterviewees advised that, on occasion, [Department of Immigration] personnel telephoned an organization and spoke to employees about a work permit holder or applicant without informing senior management, creating a lack of comfort within management and raising concerns about an abuse of persons by a government agency in an industry that is particularly sensitive about privacy and confidentiality issues,ﾒ the report said.
They recommended that the work permit application forms be reviewed as some of the questions are ﾓconfusing, difficult to answer and irrelevant.ﾒ
The report also said that all those interviewed complained about the considerable length of time that permanent residence and annual residence applications take to process.
The committee recommended that the government publish and make readily available, an immigration policy that is at the same time globally and nationally attractive and workable.
In addition, the group recommended the creation of an advisory council, chaired by the Director of Immigration, comprised of private sector representatives.
ﾓWe are of the view that it is vital to have private sector involvement at this stage in the applications for work permits within the [Bahamas Financial Services Sector] as the same will bring the knowledge of the sector to the [Department of Immigration] and will assist in identifying sector needs,ﾒ the report said.
The committee said it is aware of the gravity with which The Bahamas Government, particularly in light of the public relations and legal difficulties involved in revoking permits, views residency applications.
ﾓWe do however see an urgent need to significantly improve the turnaround time, service and general responsiveness in connection with all residency applications involving high net worth individuals,ﾒ the report said. ﾓThe inefficiencies and frustrations in this area lie at the root of the low comfort level that some high net worth individuals and expatriate personnel have with this jurisdiction.ﾒ
Mr. Moree pointed out at a press conference that any change in immigration policy would be controversial, but he said times have changed as The Bahamas is now a part of a global village.
ﾓIt will be impossible for The Bahamas to remain a first tier jurisdiction in the international [Financial Services Sector] if it does not significantly liberalize its immigration policies to allow organizations to attract key personnel and back office staff so that providers and professional advisors will be able to properly service their international business and respond rapidly to client demands,ﾒ he said.
Mr. Moree added, ﾓWe recognize that The Bahamas cannot entirely eliminate its protection of Bahamian [Financial Services Sector] employees, but it is vital that the government frame a policy that balances the sectorﾴs need for expatriate expertise with the interests of Bahamians in order to stimulate the growth of the entire sector to the benefit of all Bahamians.ﾒ
He said that the intent of the report is not to promote the elimination of the Bahamianization policy.
ﾓThe Bahamianization policy has been an extremely important part of our economy and it has resulted in the advancement of literally thousands of Bahamians within the last several decades. So we have a respectful importance for the policy and we believe that the debate which we will invite the public to become involved needs to be a very responsible and careful debate recognizing the importance of the underlying subject matter,ﾒ Mr. Moree said.
Bianca Symonette, The Bahama Journal
