Sir John Swan last night urged "arrogant" Bermudians to stop arguing about race and unite to counter the effects of the world economic crisis on the Island.

The former Premier told an audience at Pembroke Sunday School: "We need to recognise that we are just a small little pimple on the backside of an elephant and he doesn't give a s*** if we are there or not."

Sir John, one of four guest speakers at a public meeting called to discuss how the international financial meltdown could affect the Island, said what was happening would "impact on Bermuda in ways we never dreamt".

He urged Bermudians to curb their tribalism and realise "we can't fight two enemies at once". "We are all in this ship together and we are either going to sink or swim," he said.

Sir John said a new US tax law due to come into effect at the end of the year would remove some of the benefits of doing business in Bermuda.

Describing Bermudians as "an arrogant bunch of people", he said the Island needed to make itself as attractive as possible to international business and stop alienating expatriates and tourists.

"We have got to stop telling people they shouldn't be here. We are going to see some of the capable people quietly exit," said Sir John, adding that some had already left because of warnings about their work permits not being extended.

The country's longest-serving former Premier said the message being given to foreigners was: "You are the reason we have high rents. You are the reason we are so successful but we don't want you here."

He added: "Let's ask The Royal Gazette to take the bulls*** off the front page so that we don't send this message around the world."

The way to attract people, said Sir John, was to make the Island a safe, welcoming place. Citing Bermuda's tiny size and remote location, he said: "We can police this place. The only problem we have got is our own people beating up on each other."

He said rather than a "great conversation on race" there needed to be a great conversation about the economy and the future.

That, he claimed, would be more beneficial than "talking about the past and what somebody did to us yesterday".

The three other speakers at the meeting, organised by Imagine Bermuda 2009, agreed that Bermuda will not be immune from what is happening in the world's financial markets.

Former Government chief statistician, senator and MP Calvin Smith said the Island's "outrageous rents" would come down but locals would have to work harder in a recession, claiming "Bermuda has got away with murder".

Bermuda College economics lecturer Craig Simmons outlined the benefits of Bermuda adopting a counter cyclical fiscal policy, meaning Government should not scale back on expenditure when the public is reining in on spending.

Former Chamber of Commerce president Peter Everson said Government could take some immediate steps to inject money into the economy but that everyone was going to have to "buy smarter" and "work smarter".