Many of Bahrain's key economic sectors could suffer massive losses when labour fees are introduced, it was claimed yesterday.

A study warning against the detrimental impact of the fees on economic profitability will be released tomorrow.

The Bahrain Chamber of Commerce and Industry (BCCI) commissioned Ernst & Young to conduct the two-year study.

The research highlights the potential negative impact of fees which are expected to become effective early next year as part of the labour reform project.

"The study has warned that several key economic sectors would suffer massive losses, specially industrial and construction companies," BCCI chief executive Ahmed Najm Abdulla said yesterday.

He also revealed that dozens of companies and businessmen had been surveyed as part of the study.

The Labour Ministry earlier announced that it will impose fees on various sectors including construction, industry, hotels and restaurants, retailers, transport, banking and finance and other services.

Based on the study's findings, the BCCI officials are now calling on the ministry to seriously reconsider the fee-levying scheme. The Bahrain Contractors Society also took a similar stance in a letter addressed to the BCCI.

BCCI second deputy chairman Adel Al Maskati chaired a team in charge of following up the study with the consultancy firm. The study will be available tomorrow on the BCCI website.

Meanwhile, Labour Minister and Labour Market Regulatory Authority (LMRA) chairman Dr Majeed Al Alawi yesterday expressed surprise over a BCCI claim that it was not aware of and did not take part in discussions over new expatriate workers' fees, reports our sister paper Akhbar Al Khaleej.

He said BCCI's representatives on the LMRA board, Farook Almoayyed and Al Maskati, took part in the May 31 LMRA board meeting discussions at which the new labour fees were approved by all parties including BCCI and General Federation of Bahrain Trade Unions' representatives. -TradeArabia News Service