Former Premier Alex Scott has warned that Budget cuts should not hit the most vulnerable people in Bermuda.

And he said savings could be made through more efficient Government — rather than through large-scale job losses or privatisation.

He added that the global economy had changed “dramatically” since his Premiership, which ran from 2003-06.

Mr Scott said: “The challenge for the Finance Minister and the Government is to ensure that we follow a fiscally responsible way forward — however, we do have a social responsibility and one could argue a social contract with the populace we serve, especially in these difficult times.

“Social programmes should not be dealt a serious injury, even as we try to maintain a healthy course forward that will allow us to reduce our indebtedness and keep our economy competitive.”

And he added that education should be protected from cuts to ensure a viable workforce for the future.

Mr Scott was speaking as experts predicted Budget cutbacks of up to $100 million tomorrow.

The SAGE Commission — set up to look at ways of cutting the cost of Government — recommended first year cuts of $65 million, although Finance Minister Bob Richards pledged to be “more aggressive” than SAGE as the Island looks to cut its massive deficit.

Mr Scott said: “I have great respect for the management group in SAGE, but SAGE was done from the corporate perspective.

“The Government cannot run its affairs as it was a boardroom.

“SAGE works on paper — it won’t work, in my estimation, in pragmatic and practical terms as a policy and terms of reference for the Government going forward.

“It had some good points — but some even dangerous considerations, touching on people’s pensions and the privatisation of some operations at the expense of labour and employees.”

And he added that the SAGE report focused on those “least able to weather the challenges”, while “the private sector, the one percent, the wealthy, were not even considered.”

Mr Scott singled out the new Tourism Authority — which took the marketing of the industry out of Government hands in favour of an arms-length body run by industry figures — as an example of an experiment which could turn out to cost more than reorganising the old Department of Tourism.

He said: “The savings can be realised in efficiency, in the way we manage our affairs, as opposed to looking to cut our way out.”

He added: “Savings could be made just by revamping and reviewing what we have, instead of putting millions of dollars in the hands of the private sector, who have an obvious conflict of interest.

“Sometimes, the notion of cutting is more expensive than managing your way out with new ways of doing the fundamental services we must continue.

“We may look back and find that it caused more harm than help if we cut too fast, too far and too deeply.”