The Bermuda Government was urged to establish a strategic plan "to manage the burgeoning growth of its international (business) sector.'' Out-going chairman of the International Companies Division of the Chamber of Commerce, Mr. Adolf Luttke, yesterday said that given the pace of change and the challenges ahead, such planning was critical.

"If Bermuda is to retain its prominent position as a leading offshore option, it must draft a long-term strategic plan for international business,'' Mr.

Luttke said during the chairman's report at the ICD's AGM.

As the Premier and key cabinet ministers listened, Mr. Luttke, an executive with pharmaceutical and health care global giant, Corange Ltd., argued that with the increasing popularity of Bermuda as a business centre, the Government needs to plan more carefully.

He said that there will be questions to answer such as the effect on Bermuda if more companies wanted a physical presence here. He posed questions.

"How many expatriates is Bermuda willing to accept? Is there enough suitable and affordable housing? Is there quality office space available in Hamilton? How would the island accommodate that many more cars on the road, that many more children in the schools, that many more members wait-listed in the clubs and vying for Tee-off times? What is the tolerance level of a community of only 22 square miles?'' Mr. Luttke outlined how the appeal of Bermuda to international business had been substantially growing. The Government has been funding business promotion for the Island overseas.

"If this investment is successful -and I have no reason to doubt it will be - then this could result in implications, which if not fully analysed, may cause barriers to growth or even a deterioration of the existing environment.'' The executive noted that international businesses operated globally and expected uniform efficiency levels. He said Bermuda had to maintain or improve its appeal as an offshore jurisdiction.

"Money is a sensitive commodity,''he said. "Like water, while undisturbed, it remains still or runs smoothly. However, when you throw a stone into a quiet lake, you observe waves; when you block a water flow by rocks or by building a dam, the waters will flow to alternate routes, as does money when its environment is not allowed a smooth flow.''