Bermuda is currently experiencing a "false economy'', a local business leader has charged.

The international community is thriving, but the hospitality and retail industries are weak and receiving little help.

Michael Smith, the newly-appointed president of the Chamber of Commerce, made this claim yesterday at the weekly luncheon meeting of the Hamilton Lions Club at the Royal Bermuda Yacht Club.

He said Bermuda's infrastructure needed improvement and disclosed that the Chamber was working with the Monitor Group to develop a business resource centre.

But he declined to comment further until the project was beyond its "infant stages''.

Mr. Smith said the Chamber's mission statement guided it to work both indirectly and directly with Government to help develop, stimulate and protect the Bermudian community.

And he said working partnerships with members of local business, the hospitality industry, and international business were also important mechanisms.

But Mr. Smith noted that views of international business only being represented by exempt companies, or the hospitality industry only being represented by restaurants and hotels, were too limited.

Instead, Mr. Smith said the Chamber saw the service providers from the wider community which supported the sectors as equally important aspects.

He said the Chamber could "prod'' Government "to keep it on the right track'' by ensuring money was fairly raised and well spent, or by ensuring leaders were responsible for all their constituents.

He admitted the Chamber had no legal authority to advise, but said: "Collectively we have a loud voice''.

And he warned that businesses represented constituents who could "vote with their feet''.

Mr. Smith also said although Bermuda was only just coming out of a large education shake up, efforts had to be made to create stronger links between employers and their future employees.

He said education officials had to ensure the needs of both the business community and students were met by the school curriculum.

"Government has a lot of work to do,'' Mr. Smith pointed out. "There's a lot of work to do. Up to 2,000 new jobs may be created in the next five years.'' He said if Bermudians were to fill the positions, Government needed to determine what trades or professions would be needed and prepare students for them.

He also questioned how Government would tackle such issues as housing, education or transport if non-Bermudian workers were required.