Former Cabinet Minister Renee Webb has come out against her own Government's proposed workplace quota law, saying Government must fix the education system first.

The Workforce Equity Act 2007 will give the Commission for Unity and Racial Equality (CURE) powers to fine companies up to $50,000 if they block the progress of black Bermudians.

Firms of 40 or more employees will be forced to set up policies to ensure Bermuda's largest racial group gets its fair share of the top jobs and the draft bill has now been shared with businesses for feedback.

However, Ms Webb said: "Until you address the education system you cannot turn around and say people should hire people who are underqualified.

"In business, you want to hire local if you have the opportunity. It is much more cost effective to hire locally given the choice."

She said this was particularly the case now as a work permit person has to give up their life, work a few years in Bermuda and then get sent home to be replaced by another work permit holder with all the resettlement costs which goes with it.

Such costs include housing the newly-arrived worker until they get settled, paying housing subsidies in some cases and then flying them home at the end of their stay.

"Businesses look at the bottom line. If you are going to have a system where Bermudians are hired, and I think Bermudians should come first, you have to compare eggs with eggs, you have to compare like with like," Ms Webb said.

"Are we making sure Bermudians are qualified to take over? That's the big issue. Are we training them to take their rightful place in the country?

"Is Government creating a scenario where Bermudians can work overseas and they are getting training. Is that being encouraged? I think the cause is laudable but, if you look at a quota system you have to look at the economy, how it works. Look at the education system, look at work permit policy.

"There are a number of areas that need to be addressed before we talk about quotas. Are Bermudians at the level to compete equally and effectively with foreigners in the workforce?

"If that is not the case what is Government doing?"

She said businesses should not be forced to take people who are not qualified.

The draft act states that companies would not be expected to promote those unable to do the work.

But Ms Webb said: "The question is, if they are qualified, don't you think anyone running a business would take a qualified Bermudian over a foreigner?

"Quotas are not the answer — we need a much more holistic approach."