unless the Country takes immediate action, leading banker Sir David Gibbons warned yesterday.

He called for the establishment of a coalition of Chamber of Commerce, Government and international business representatives to determine the needs of the labour force and to organise student training in that direction.

After the economy fell into recession in the late 1980s, Bermuda's workforce failed to adapt to technological advances, he told a Chamber of Commerce breakfast meeting yesterday. And since then, it had not returned to steady growth.

"I mention this,'' he continued, "because economic growth is vital to progress in a democratic society.'' He calculated that over the last five years, the labour force has lost six percent of the retail jobs, 15 percent of construction jobs and seen stagnation in other sectors.

By contrast, the bright spots were in banking, insurance and international business, where there have been job additions of ten percent, 15 percent and more.

As Bermuda's economy changed, Bermudians -- including those hit by job losses -- need to adapt and prepare for a new age, he said.

"In the last analysis, final responsibility rests with the individual,'' he said. "Solutions, I have no doubt, can be found.

But he said Bermudians in the 40 years after the war became spoiled to a degree while enjoying almost uninterrupted growth in tourism and international business which were automatically reflected in decades of continuing improvement in the standard of living.

"Every Bermudian has become increasingly frustrated while the economy stagnated in the '90s which is why I have now attempted to identify the problem as it exists today,'' he said.

"To succeed, therefore, it will not only require the full support of Government and the private sector, but the individual must make a vital contribution.'' He advised: "What's certain in Bermuda is that we need to adjust our thinking and emphasise the closest cooperation among Government, the financial sector and international business.

"The questions to be asked are whether our education system is preparing our people for jobs in growth areas, and whether our business training and Government policies are appropriate to assist good workers re-enter the workforce once they have been affected by these economic trends.'' Sir David, chairman of the Bank of Butterfield and a respected former Premier, also repeated concerns about the lacked Bermudian tradesmen.

"Twenty years ago,'' he said, "we were largely self-sufficient in such trades as electrical, motor and air conditioning for example.

"Today, scores and scores of qualified people have had to be brought into Bermuda as we are turning out all too few qualified people in the technical sector -- and these jobs are starting at $30,000 per annum.'' Sir David acknowledged Government's current plan to embark on education reform, but he questioned whether the educational emphasis was on the right skills, if the right courses were offered, if resources were being properly allocated, and if business and Government were cooperating enough to maximise opportunities for Bermudians.

He said: "The answers to these questions will provide the building code that will better prepare Bermudians to weather the winds of global economic change.

In finding answers we will then provide the basis for a resumption in economic growth which will mean growing revenues again after five years of stagnation.

"Having enjoyed 40 years of growth in our incomes, the past five years have proved frustrating to us all.'' But Sir David also argued that tourism remained "critical to our success, indeed survival'' and Bermudians must demonstrate that they understand that.

He noted: "The warm friendly welcome which was our trademark for decades has significantly diminished and islands to the south such as Cayman and particularly the Bahamas are now way ahead of us.''