A think tank of industry chiefs and political leaders has been formed to find strategies to stave off looming economic threats.

Bermuda First, which has more than 80 members including a 17-strong steering committee of local and international business heads, will devise ways to prosper in the recession.

Led by ArielRe founder and CEO Don Kramer the group will look at topics including:

¦ US and European hostility to tax havens

¦ the decline in tourism

¦ the forecast decline in construction

¦ high housing costs

¦ immigration

Mr. Kramer said work permit term limits had affected some sectors although the international business community "does not seem to have suffered".

And over the next ten weeks a risk and opportunity study by McKinsey & Company described as the world's oldest and largest management and consulting firm will give recommendations.

The firm has expertise in financial services, insurance and tourism and has conducted a number of studies on economic development strategies and financial centre competitiveness. A final report will be available for the public by the end of May.

Bermuda First is primarily funded by the private sector, with the full cooperation of virtually every facet of the Bermuda economy.

Mr. Kramer said: "We expect the intensive research by McKinsey will reveal some counter intuitive findings about our economy as well as several strategies for dealing with the impending global economic storm."

Premier Ewart Brown, who is co-chair of Bermuda First, said: "It is our fundamental duty to ensure we leave the Bermudian economy stronger and more robust than we found it.

"That will be a true test in these nearly unprecedented testing times. But with the brain power now focused on putting Bermuda First I have great faith. My confidence in our economic future is strong."

He said Bermuda First was an all-hands-on-deck non-partisan economic effort to show the Bermudian public that "we are not only minding the store, but working to do whatever is necessary to ensure the store is successful for a long time to come".

Opposition Leader Kim Swan, is also a co-chair, welcomed the initiative, which he said had been spearheaded by Bank of Bermuda head Phillip Butterfield and US Consul General Gregory Slayton.

Mr. Swan added: "In my view, we are late to the game in this undertaking given the long-standing, long-forming threats to Bermuda both external and internal.

"We face a perfect storm of challenges today.

"Recession is the hurricane, but within its walls swirl a host of tornadoes that challenge our status as an offshore jurisdiction, the future of our tourism industry and our reputation for good governance.

"All of these things threaten our livelihood, all of them require realistic, sensible, deliberate and collective action on our part.

"All of them require us to put Bermuda first."