'Firms must hire more Bermudians' - Cox

MONDAY, FEB. 21: Job creation is vitally important in pushing the economy forward.

This from Premier and Minister of Finance Paula Cox, who said Government was “signalling a clear commitment to shared sacrifices today while repositioning the economy to grasp the opportunities of tomorrow”.

She was speaking to nearly 300 business leaders at the Bermuda Chamber of Commerce’s Power Breakfast at the Fairmont Hamilton this morning.

Premier Cox said: “Our economy must increase abilities to absorb labour. We have to meet the labour challenge.”

She said Government must “encourage job makers” to create more employment opportunities.

Premier Cox said when companies create jobs they must hire Bermudians “and signal an intent to employ young Bermudians at entry level positions.”

She said as an incentive to help create jobs payroll tax relief would remain for those companies that hire apprentices and approve training of Bermudians.

“There is zero rate of tax on that and that has been existing for some time.”

The Premier, turning to the hospitality industry, said: “Our hotels and restaurants have to absorb more labour.

“The relief from payroll tax for the hotel sector is set out in the Memorandum of Understanding between the Bermuda Hotel Association and Ministry of Finance and that will certainly be extended to March 31, 2012.”

She said Government was in frank discussions with both the Park Hyatt project slated for St. George’s and developers of Morgan’s Point in Southampton — two projects that would stimulate the economy through job creation in the hospitality industry.

Premier Cox said a raft of other tax-relief measures had been extended with the goal of helping businesses.

“The relief provisions for reduced payroll tax for retail establishments during the months of January, February, March will continue in 2011-2012.

“Customs duty relief measures on capital goods for a number of sectors, including the retail sector, will be extended beyond March 31, 2011.

“And for most of it, the tax rate will remain unchanged except for a minor change in the Customs tariff and Government fees, including an increase in cellular phone licences.”

The monthly fee on cellphones will increase from $5 per month to $7 per month and Government expects this to raise $2.6 million in additional revenue.

Ms Cox said there would be no change in stamp duty, land tax, passenger taxes, vehicle licences, or tax on alcohol or tobacco.

She suggested the $50 million payroll tax break would help stimulate the economy because islanders would have more money to spend on local goods and services.