Eldon Trimingham has called on Government to scrap the collection of duties and introduce a point-of-purchase sales tax if it's serious about reviving the Island's tourism industry.

The Chairman of the Bank of Bermuda and head of Trimingham Brothers made the call over the weekend at the UBP's annual general conference, where he took part in a panel discussion on the future of tourism.

In a statement subsequently issued to reporters Mr. Trimingham maintained sectors related to the tourism industry were shouldering an unfair tax burden compared to those operating in the international sector.

Government duties represent an upfront tax which has to be paid by the retailer and hopefully recovered when the product is later sold, he yesterday told The Royal Gazette . And international companies -- which deal primarily in intellectual properties -- largely escape the tax.

"Everyone must take a markup or margin on the up-front tax, be it a hotel bed or a scooter, if only to finance the tax,'' he told party members.

"If the Island dropped its duties and went to a sales tax that was collected at the point of sale that would eliminate up-front costs and bring prices down.

"Right now everybody in the tourism industry lives in this high-priced environment,'' said Mr. Trimingham. "And the number one complaint tourists have is price.'' Meanwhile the local tourism industry is buckling under the weight of an unfair tax burden, he said.

It's not the first time however Mr. Trimingham has called for a review of tax policy. In a January 1996, letter to Bank of Bermuda shareholders he called for a "fundamental review of Bermuda's existing tax structure to broaden the tax base and ease the tax burden on those sectors of the economy that continue to shoulder more than their fair share.'' But this time the UBP seems to be listening, he said.

Sitting on the panel with Mr. Trimingham was Toppy Cowan of the Pink Beach Club, who said calls for a fairer tax structure were realistic.

"I respect Mr. Trimingham's points. I think he and guys like John Casling (of the Coalition for Change) are realistic. We've got to change the whole of Bermuda and lot of things were said that needed to be said,'' he told The Royal Gazette .

Meanwhile what comes out of the UBP exercise remains to be seen. "They obviously see this as a serious problem but we really needed all day to discuss it, not just eight-minutes per speaker,'' he added.

Retailer John Casling of Daina Inc., agreed that Mr. Trimingham's comments had a lot of merit.

"I understand fully with what he's saying and I think it needs to be addressed. It's a valid point but I also think it's separate issue,'' Mr.

Casling said.

"What we need right now is a plan. As people I have a very high opinion of David Saul and David Dodwell, but I disagree entirely with his (Saul's) statement that we'll have tourism turned around in three years.

"The basics of marketing is you have to have a plan, and at the end of the day there is no plan,'' he said. "The only thing that came across (at the conference) loud and clear was that Bermuda's a gorgeous island. We just don't know what to do with it.'' CONFERENCE CON POLITICS PTL