The Government would be better off sticking to “strengthening its existing responsibilities” before extending its reach into the private sector, the Bermuda Chamber of Commerce said after the 2024 Throne Speech was read.

A statement issued by Marico Thomas, the president, expressed concern over potential overregulation, saying the Government’s role was “not to micromanage the economy”.

It said the speech’s projected repayment of the island’s debt over the next ten years also needed to be “managed cautiously” in light of evolving global taxation, such as a potential 15 per cent tax rate in the United States.

The Throne Speech cited revenues from the corporate income tax to come into force next year, but the chamber responded: “It is premature to set lofty expectations without publicly detailing the forecast methodology or collecting the first dollar of corporate income tax.

“We anticipate the Tax Reform Commission’s findings to shed light on these impacts and look forward to the planning on how the tax base will develop.”

The statement noted the speech’s reference to a “worrying” consolidation of key industries, with mergers to receive more scrutiny.

The statement urged the Government to “focus on core responsibilities” from staffing to educational reform, saying intervention in the private sector risked “distraction and resource dilution”.

“We should ensure that the internal gears of government are working well before corporate income tax is received; otherwise, there are risks of an inefficient use of these tax proceeds in the future, providing diminishing returns.”

The statement advised a cautious approach on mergers, acquisitions and potential price and fee measures in financial services.

The Government was commended for heeding points on housing and landlord legislation, which were raised by the chamber ahead of the Throne Speech.

The statement questioned the viability of the City of Hamilton for real-estate development, given its high land costs and limited potential for commercial returns.

It added: “Higher residential density is welcomed, and while the Government has committed $50 million for residential projects in Hamilton to date, none of this funding has been utilised.”

It called for “a stable and clear immigration framework” to grow the island’s population.

The chamber advised that the Government focus on getting its own house in order, adding: “While we acknowledge the Government’s work to the various challenges that are faced, both structural and economic, we recommend that they focus on resolving these foundational issues first.

“Ensuring the success of public education, immigration reform, healthcare, planning, statistical data accuracy and debt management are vast and essential projects.

“Once progress is made in these areas, any adjustments to the economy would be better informed and more sustainable for all stakeholders.”

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• To read the Bermuda Chamber of Commerce statement in full, see Related Media