Bermuda’s plan for a sovereign wealth fund is not resonating with all stakeholders.

One economist believes the Government should concentrate in the near-term on two of the island’s biggest issues: the national debt and education/training/employment.

Peter Everson, the former president of the Chamber of Commerce, agrees with the chamber’s recent statement that before considering a sovereign wealth fund, the island must first focus on its mounting national debt.

He also highlighted a looming problem — and potential solution — to the upcoming need for hotel staff.

"You've got to walk before you can run," Mr Everson said in an interview with The Royal Gazette.

"Today, we're still spending. The Government, on our behalf, is spending more money than we pay in taxes. So the debt is getting bigger every day."

The Government has outlined a plan to rid the island of its debt using some revenue from the 15 per cent corporate income tax, which took effect in January.

However, the economic challenge is stark: approximately 15 per cent of all government expenditure goes towards interest payments, according to Mr Everson.

“Obviously, paying off the debt would immediately improve life in Bermuda because we wouldn't be paying that money overseas,” he explained.

The Government proposed the sovereign wealth fund during the Speech from the Throne this month.

However, the Chamber of Commerce said it “appears premature” and Mr Everson agreed. He called it too ambitious given the fiscal landscape.

“Until, firstly, we get an actual surplus on the government budget, then all talk of such issues is moot,” he added.

This fiscal constraint intersects with broader economic challenges facing Bermuda, he continued.

They include a plummeting population, workforce shortages and educational gaps.

“Today, there’s around 35,000 people working and there’s around 27,000 to 28,000 Bermudians tops who are in the labour market,” he noted.

“So, therefore, for every four Bermudians, there’s five jobs.”

He offered an historical example: “Fifteen to 20 years ago, there were 56 positions for butchers in Bermuda’s big hotels. All 56 of those were foreigners on work permits.”

These jobs, which offer stable nine-to-five schedules and good wages, remain largely unfilled by local workers because of educational gaps, he said.

The tourism and hospitality sectors will be particularly impacted by these workforce challenges.

With major hotels, including the Fairmont Southampton, preparing to reopen and expand, they may be in for a shock.

"One of the requirements is that five years post-opening [according to the Tourism Investment Act 2017], they need to have a minimum of 70 per cent Bermudian staff. Well then on current projections, they're not going to be able to get anywhere close to that."

The root of this issue, according to Mr Everson, lies in the public education system.

“The public education system has underperformed for multiple generations,” he said. "This is the number one thing to be fixed."

Mr Everson’s solution is straightforward: an independent education authority focused on measurable improvement. “Just get the basic level of achievement of every class to improve by 5 per cent a year for the next five years,” he recommended.