A Government Senator yesterday warned of dire economic consequences for Bermuda if economic opportunities are not opened to a broader cross-section of the Island, including across the racial spectrum.

Senator E.T. (Bob) Richards said, "Make no mistake, the failure to redress this economic imbalance poses the single largest threat to the long term health of the Bermuda economy.'' He told Hamilton Rotary that there were structural impediments in the workplace and the marketplace that stymie the economic aspirations of certain segments of the community.

Sen. Richards called for tax breaks for small businesses, innovative forms of financing for entrepreneurs and better funding for the Bermuda Small Business Development Corporation.

He said a successful future for Bermuda would only be achieved if a wider group of Bermudians had a greater stake in the economy.

"This commitment to one's business,'' he said, "also translates in aggregate to commitment to Bermuda as a whole. When people own a piece of the factors of production, they cease to be merely citizens, they become stakeholders.

"The difference in the behaviour of a stakeholder and a citizen is similar to that between an owner and an employee.'' More in Business, Page 23 SENATE SENATOR SEN