David Burt faces a crucial balancing act tomorrow with his first Budget as Premier, former premier Sir John Swan warned.

Sir John called Mr Burt “the best of the best that we could have to lead the Progressive Labour Party”.

“Not only does he have the intelligence. He is also a visionary committed to stepping outside the box when he recognises the need to do so.”

The former leader of the United Bermuda Party, who was Premier from 1982 to 1995, said that Mr Burt “knows he has, in his own party, some of the adversaries and naysayers and people who would like to maintain the status quo, whatever that is in their minds.

“There are those who still feel there are scores to be settled, and that you need to take from one and give to the other. It seems to me, and I have every faith in the Premier, that he has to take bold steps. He can’t be caught in the rhetoric of Court Street, unions or pressure groups, and he has to encourage his colleagues in supporting him.”

The Premier has vowed that the 2018-19 Budget will be “entirely” directed at building growth.

Mr Burt has already declared his intention to relax the 60:40 rule on foreign ownership of local businesses, arguing that it would boost competition.

Balancing business interests against appeasing the party base would be “a leap of faith”, Sir John said. “I’m happy to support him. I think he can do it,” he added.

He noted that Mr Burt was also in the rare hot seat of being Minister of Finance as well as Premier — a role last held by Paula Cox of the PLP.

Sir John said: “A Premier puts himself on the line by being Minister of Finance.

“You’re saying we have massive economic problems, and you can’t ask someone else to do it while you sit back and be the nice guy.”

Mr Burt’s most urgent priority was wrestling Bermuda’s debt to the ground, Sir John said.

“He also has to take on the commercial side of Bermuda, not just the working man. Nothing has changed in the nomenclature of how Bermuda does business, other than the America’s Cup, which was a one-off. We’re still as protectionist as we’ve been for the last 40 to 50 years.”

While he praised the One Bermuda Alliance finance minister Bob Richards for doing “a hell of a job” arresting the island’s decline, Sir John said: “We still never stimulated the economy.”

He added: “I don’t want to hear anything about term limits or foreigners taking our jobs. What we need is more foreigners with capital, and with products and intelligence to produce income for Bermuda.

“The Premier says he’s going to change it. I hope he does. If he tries to pay dollar debt with penny income, we will just sit here. International business has had a wonderful 30 years, but it’s had its high, and we need to accept that.”

Sir John also acknowledged the need for “buses, ferries, schools and garbage trucks — we have to catch up, and that’s going to cost money”.

His remarks came as the Bermuda Union of Teachers called for help in the Budget as teachers were forced to buy basic supplies from their own pockets.

Meanwhile, the urgency was underscored by Arthur Wightman, leader of PwC Bermuda, who said it was “important not to underestimate the significance of the next few years to the island’s sustainability”.

Mr Wightman said the Government could “lay the groundwork for public sector reform, eliminate the fiscal deficit and begin to pay down the debt, create incentives to grow and diversify the economy, boost employment and reduce income inequality”.

“The challenge is that a number of these opportunities vie for the thin resources available in the short term. Such is the nature of the Budget,” he added.

A successful government would have to do “more with less and grow the tax base while at the same time making it more progressive and equitable”, Mr Wightman said.

“We applaud the critical focus on wholesale tax reform (through the Tax Reform Commission) and on economic growth (through Bermuda First). These and public-sector reform will be key to placing Bermuda on a sustainable path that should facilitate greater income equality. The electorate and the business community will be keeping a keen eye on any signs of fiscal indiscipline.”

Mr Burt named the Tax Reform Commission’s membership yesterday, which he said would “go a long way in dealing with some of the biggest challenges which we have”.

The Premier added: “Our system of taxation creates inequality by its very nature and structure, and our overreliance on payroll tax at the same time discourages job creation in Bermuda.

“We have to balance those two aspects and I’m quite certain that this diverse team will be able to look at the issues that we have and will be able to arrive at recommendations that will help Bermuda as we try to get past that impasse and have broad-based tax reform that encompasses all sections of Bermuda society.”

Asked what will be done to address the issue before the commission’s report is done in six months, Mr Burt said: “You will have to come on Friday morning.”