Hoteliers, retailers and restaurateurs need the chance to raise concerns about the introduction of minimum and living wages “sooner rather than later”, a finance expert warned yesterday.

Nathan Kowalski, chief financial officer at Anchor Investment Management, said the sectors were among the most likely to be affected if proposals in a report prepared by a parliamentary group get the go-ahead.

If the recommendations are approved, some of Bermuda’s lowest-paid employees could triple their pay packets within three years as part of a plan to ensure all workers can afford food, housing, clothes, medical care, education for their children, and transport.

The report by the Parliamentary Joint Select Committee on the establishment of a living wage, tabled in the House of Assembly last Friday by chairman Rolfe Commissiong, recommended that a minimum wage of $12.25 per hour be introduced from May next year.

The report added that a living wage of $18.23 should be in place by 2021.

Mr Kowalski said the report was “a good start” but believed “a lot of work” had yet to be done.

He explained: “It’s important to see what effect it would have on jobs or employment or businesses involved.”

He said retailers and members of the hospitality industry “are the major areas that need to be consulted at the very least”.

Mr Kowalski added: “I think there should be an opportunity for anyone to come forward that could potentially be affected in a negative way so that they can voice their concerns.

“They’re going to have to deal with it if there’s any cost adjustments; it could be inflationary, it could cost jobs. Individual stakeholders have to be consulted.”

He said: “I think the process needs to start sooner rather than later if we are really going to start phasing things in by May next year.”

The report accepted the need for “extensive industry/employer consultation” before any statutory minimum or living wage scheme is finalised.

It added: “There must be a full assessment of the economic impact and the economic feasibility of establishing a minimum/living wage before any steps towards implementation can be progressed.”

Mr Kowalski, who is also treasurer at the Bermuda Chamber of Commerce, suggested that a new wages policy could be offset by some kind of relief.

He added: “I don’t think we want to penalise employment at all, we just really want to encourage full employment, we don’t want to make the cost of an employee higher.”

Stephen Todd, chief executive officer at the Bermuda Hotel Association, said he looked forward to more discussions on the proposals. He warned “further analysis” as well as greater input from public and private organisations was needed.

Mr Todd said: “The consultation to me is key and the piece that I would like to ensure is in place is that if this is intended to eliminate unscrupulous practices on the part of any entity, that’s fine.

“But I don’t believe we should all be painted with the same brush.”

Mr Todd said members of his industry were expected to follow the collective bargaining agreement agreed with employee unions “to the letter”.

Erica Smith, executive director of the Bermuda Economic Development Corporation, said examination of other countries that had introduced a living wage structure showed “there really hasn’t been this closure of businesses that was anticipated”.

But Ms Smith added there was evidence of happier and more productive employees and that the extra cash in pay packets meant money went back into local economies.

Ms Smith said a pilot programme could be beneficial.

She said: “The politicians, the people who are obviously deciding overall the policies for Bermuda, are seeing this as a serious and a timely issue that should be addressed, so in that regard I support wholeheartedly the work they are doing to research and come to conclusions.”