Governor Sir John Vereker's speech two weeks ago on Bermuda's economy and how, broadly speaking, economic success does not necessarily lead to happiness, raises several crucial questions about the Island's future.

To that end, the speech has been posted on The Royal Gazette's website, www.theroyalgazette.com, and will also be published in the newspaper's business magazine, Bottom Line.

Sir John rightly identified public education as a major obstacle ? and part of the solution -- to Bermuda sustaining its economic success. Low graduation rates make the Island more dependent on foreign labour and could exacerbate social and racial divisions. Without sound education, racial division based on wealth and lack of opportunity will get worse, not better.

It is worth noting that Sir John said Bermuda needs to invest more effectively in education ? we already spend vast amounts on education; the question is whether the money is being spent well or if it is being wasted. Poor public school graduation rates give the answer.

Poorly qualified workforce entrants create a double strain on the economy; they will tend to be less productive, thus making Bermuda uncompetitive when it is already at risk of pricing itself out of any market it enters; and it creates a greater dependence than necessary on foreign workers ? especially in higher paying jobs.

Presumably Sir John will be criticised by some for commenting on an area that falls outside of his duties as Governor. But all Sir John is doing is commenting, and he rightly says it is up to Bermuda to find the solutions. In the end, you can't fault someone for telling the truth.

The other part of Sir John's speech dealt with the question of sustainable development and whether the Island's undoubted success has led to greater happiness.

It is fair to say that the rich are fonder than the poor of telling people that money can't buy happiness, but it is also true that "happiness" surveys do not find much correlation between wealth and happiness. People in some developing nations with far fewer material benefits than people in Bermuda and the developed world often claim to be happier.

But it may also be true that people who have enjoyed material wealth are unlikely to be happy when they no longer have it.

Sir John rightly suggests that happiness ? and it should never be forgotten that the American Declaration of Independence declared the pursuit of happiness and not happiness itself as a fundamental right along with life and liberty ? may have less to do with material wealth and more to do with quality of life, and this can mean greater access to health care, recreation, the arts and so forth.

Sir John touched on the preservation of open space ? a touchy subject right now ? supporting the preservation of open space but also noting that much existing land is now under-utilised. This can be read several ways, but it surely makes sense, as the sustainable development report recommends, to building on "brown field" sites and not on virgin land. But those are these newspaper's words, and not Sir John's.

Finally Sir John says: "Growth will make us richer, and that could make us happier, but only if we manage it carefully."

Those are words to live by.