By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A prominent attorney yesterday said she “loves the challenge” posed to the Immigration Department by the Commercial Enterprises Act, and is “dying” to see its impact.

Judith Whitehead, Graham, Thompson & Company’s managing partner, expressed hope that the 14-day work permit approval deadline imposed on the Department by law would result in an improved turnaround time for all other applications.

Speaking at the Bahamas Business Outlook conference, Mrs Whitehead said she backed the Act’s introduction as “setting the stage for the future” by moving the Bahamas’ investment incentives regime away from its emphasis on “bricks and mortar” projects.

She suggested many of the criticisms surrounding its introduction were misplaced, since the businesses/industries targeted by the Commercial Enterprises Act were “a virtual mirror” image of those identified for foreign direct investment (FDI) long ago by the Bahamas Investment Authority (BIA).

Mrs Whitehead added that they were sectors where Bahamians have yet to “move into the driver’s seat”, but she urged young, budding entrepreneurs who are technologically savvy to maximise the Act’s benefits to their advantage.

Emphasising that she liked the Commercial Enterprises Act and its intent, she said: “The Commercial Enterprises Act was much debated, much scoffed at and criticised.

“I’ll say this as diplomatically as I can: It’s not the best drafted law I’ve seen. It has some definition issues, but these can be fixed by amendments.”

Mrs Whitehead said the Act applied equally to Bahamian and non-Bahamian investors, and was targeted at specific industries - those targeted by the Minnis administration as potential job and growth generators, with the ability to earn foreign currency and diversify the economy.

Describing many sectors as e-commerce based, she added: “This list of specific enterprises is nothing new. This largely mirrors the BIA list of industries targeted for overseas investment. The industries targeted for overseas investments is a virtual mirror image of what is in the Commercial Enterprises Act.”

The sectors targeted by the Act are niche financial services offerings, including captive Insurance; nanotechnology; computer technology; software design; data storage; maritime trade; aviation registration; wealth management; and select manufacturing enterprises.

Mrs Whitehead said that, boiled down, the legislation simply provided a ‘fast track’ work permit process for companies in this industry that made a minimum $250,000 investment.

If they need to bring in senior executives and management staff, or specialist workers not available in the Bahamas, they can apply to the Commercial Enterprises Board for a certificate enabling them to obtain work permits for a specified number of posts.

If approved, these businesses can bring in expatriate staff without having to first possess a work permit. The application must be made to the Department of Immigration within 30 days of their arrival in the Bahamas and, if no reply is received within 14 days of its submission, the work permit will automatically be assumed as granted.

“This is the part that got everyone completely overwrought,” Mrs Whitehead said of the 14-day work permit ‘turnaround’. “This has been met with complete disbelief, and it’s not unreasonable if anyone knows the Department of Immigration. It could not happen in this period of time.”

The Graham, Thompson & Company managing partner is not the only person to express scepticism about the Department of Immigration’s ability to meet this timeframe, given its current performance in processing permit applications, but many in the private sector are delighted that certainly and clarity is being imposed on the work permit process.

“I love the challenge to the Department of Immigration,” Mrs Whitehead said. “I think this is great. If they do it [14 days] for these people, they can do it for everyone.

“If fear of a flood causes that Department to raise its game, I’m dying to see it and be a beneficiary of it.”

She added that the Commercial Enterprises Act, and the type of incentive it offers to investors, represents a move away from the Bahamas’ traditional ‘bricks and mortar’ based tax breaks such as real property tax and Customs duty exemptions.

“The classic Act speaks to bricks and mortar. This is a shift away from the old model, and a step into the model of e-commerce,” Mrs Whitehead said, describing the Act as “a positive step for Bahamians and non-Bahamians not interested in building a tourism facility”.

“This is the Act that essentially sets the stage for the future,” she argued, acknowledging the knee-jerk reactions and fears that the Commercial Enterprises Act poses a threat to Bahamian jobs.

Mrs Whitehead said “this is the Act that speaks” to young, technology-enthused Bahamians, and added: “Aren’t these the key areas where Bahamians never moved into the driver’s seat?

“I can’t say it will be a magic bullet, but it’s a fresh approach to the way people do business.”

Mrs Whitehead urged Bahamian entrepreneurs to embrace and fully exploit the Commercial Enterprises Act, and pointed out that local workers also have the opportunity to benefit from ‘knowledge transfer’ by working alongside skilled expatriate employees.