Bermuda is at a critical point in how it responds to the economic crisis with a fundamental change in the business environment and focus on reinvigorating the private sector required to make a recovery.

That is according to Graham Redford, president of the Bermuda Employers Council (BEC), who presented his report at the BEC's Annual General Meeting held at the Fairmont Hamilton Princess hotel yesterday.

Mr. Redford said the top priority was to promote a regulatory environment that was conducive to sustainable enterprise, cut red tape and excessive administration costs, stimulated competitiveness and provided access to lending facilities.

"During the past year, businesses in Bermuda have experienced the painful realities of the global financial crisis and the serious consequences thereof," he said.

"Indeed, there are many indications that in the context of the local economy, we are entering one of the worst winters in recent history.

"After an uncertain year, we are now at a critical juncture in how we, as a country, respond to this crisis. Non-effective policies now - or worse, an assumption that growth and employment will return unaided - could jeopardise the recovery we need.

"Fundamental change in the business environment is necessary as the period of plenty is over and a new age of austerity has arrived."

As well as working together to make it easier to do business, he said the threat of protectionist policies needed to be recognised, making sure that the desire to protect the jobs of all willing and able Bermudian workers was not at the expense of an open and globally competitive business environment.

In addition, Mr. Redford said that the needs of small and medium business should be top of the agenda on policy, by providing such enterprises with greater access to affordable credit at the same time as reducing their cost burden, which was vital to a genuine and long-lasting recovery.

He said it was also important to understand the difference between protecting employment and protecting jobs, while focusing on managing talent during the downturn to be fully prepared when the recovery starts.

Additionally, Mr. Redford said there was a need to place added emphasis on skills development for our young Bermudians, to maintain the current tax burden and ensure there were no labour disruptions or work stoppages.

"As a jurisdiction we need to accept the fact that Bermuda is firmly part of, and inseparable from, a highly competitive global labour market," he said.

"We are not different or special. We do not have problems that are exclusive to Bermuda and require Bermudian-centric solutions that will have unintended and far-reaching negative consequences for our economy and lifestyle.

"Now is not the time to batten down the hatches and try and ride out this economic storm. Now is the time to demonstrate leadership and innovation. This is the time to ensure that our social partners are involved in the challenges that we as employers face. And this is the time for us collectively to make the difficult decisions that are necessary for our ongoing economic and social well-being.

• The BEC will be holding its Gala 50th Anniversary dinner in September 2010, where it plans to introduce the Bermuda Business Hall of Fame and launch the Malcolm Dixon Memorial Fund.