There are basically two ways that governments can influence the creation of $100,000+ jobs in their province: a) hire more doctors or b) recruit companies that pay $100,000+ salaries.
A Bermuda-based reinsurance firm announced plans Wednesday for 80 high-salary jobs in Halifax, providing political leaders with a welcome respite from a series of worrying layoff announcements in the province’s manufacturing sector. Flagstone Reinsurance Holdings Ltd., which provides insurance to insurance companies, said it will create the positions with average salaries of about $100,000 for its Halifax backroom operation by 2012, adding to an existing workforce of 92.
Nova Scotia Business Inc., a provincially owned business development agency, announced it will provide a payroll rebate of up to a maximum of $1.3 million to attract the jobs to the province. Tory Premier Rodney MacDonald, who faced opposition party criticism for travelling to Bermuda in a bid to finalize the deal, said the $16,380 per job cost is a good investment. “That is something to get excited about as a province. Great news for our area,” he said.
The reinsurance firm is one among a group of Bermuda, U.S. and Caribbean financial service firms attracted to Nova Scotia over the past four years. David Brown, Flagstone’s chief executive, said financial firms on the island nations have a close connection to Nova Scotia and have often recruited accountants eager to escape the province’s harsh winters. But as importing talent to Bermuda has become more difficult, Brown has expanded operations in the province. The firm’s first subsidy deal came in 2005, when Nova Scotia Business Inc. provided just under $560,000 to create 50 positions. The deal helped build momentum among the close-knit financial services world in Bermuda, said Brown, who has quietly promoted Nova Scotia among other firms.
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