Outgoing president of the Chamber of Commerce Philip Barnett called on Bermuda to tackle the problems of racism and xenophobia in his farewell speech.

Addressing the organisation's AGM on Thursday, Mr. Barnett said the Island should take advantage of its small size and ability to be "quick and nimble" for its own gain during such tough economic times.

"Watch one of the sailing classes whilst waiting in traffic on Harbour Road to realise what the winning strategy is for two kids sailing in small, but tippy boats," he advised. "A strong gust of wind can come along, ready to propel Bermuda into the future or at least towards the next weather leg but if the two little sailors sit on opposite sides of the dinghy? Well, over she goes.

"If both choose to sit on the same side of the boat, balancing the buffeting winds with their united weight? Smooth sailing. It's time for us as a country to collectively focus on smooth sailing.

"It's starting to happen. In boardrooms, backyards, beaches, boat raft-ups, backstreets and bars, many residents are shrugging off the partisanship of race and Bermuda-centric politics, and are instead focusing on the ongoing success of Bermuda, 'another world.' For some additional help, let's look again to our neighbours to the west, who just finished a history defining moment of picking a smart steady President who just happened to be black.

"Bermuda also needs a turn towards substance and resonance and away from (as we say in colloquial Bermudian) our 'who's your Daddy' mentality. Through this, we can only hope that the heavy, stifling cloak of historical racism and current xenophobic overtones can slowly be slipped from our collective shoulders."

Mr. Barnett delivered the speech as he handed over the reins to new president Stephen Todd in front of dignitaries including Acting Premier Elvin James and Opposition Leader Kim Swan.

Expanding further on his comments after the speech, Mr. Barnett said of the issue of racism: "We in Bermuda have recognise that we have a past that has deeply affected some current members of our society. Within our lifetime we still had segregation in theatres. We have to make sure there's a full recognition of the deep impact it's had on many Bermudians."

And, he added, there is also an ongoing issue with xenophobia exhibited by some Bermudians towards expatriate workers.

"I think some Bermudians think it's not really anything, but I still hear stories of people out running down the road or railway trail and someone will wind down their window, yell an expletive, and then shout out 'go back to your own goddamn country," he said.

However, he warned that those expatriate workers are essential to the Island's future, whether they are welcome or not.

"The whole reason Bermuda is able to continue forward is because it's a country of financial excellence. It's important Bermudians understand how very important (that is) to their very future."