extra costs unique to Bermuda -- the most burdensome being local import duties.

Their views conflicted with claims by former Bank of Bermuda president Mr.

Donald Lines, who said over the weekend that local duties "were not the issue''.

Instead, Mr. Lines attributed difficulties experienced by local retailers in competing with US "super store'' prices to the Island's ban on franchises.

Trends analysis showed the bulk of retail business was likely to be in the hands of franchisers by the year 2000, he said.

And retailers were not competitive because the cost of goods before local duty was added was often higher than the sales prices in the United States, he claimed.

But local shopowners said other factors unique to Bermuda such as high wages, Customs duties and shipping costs meant they could never match US prices on some goods.

Yesterday, Trimingham Brothers managing director Mr. Eldon Trimingham claimed elimination of local import duty was "the only single thing that could make a significant difference to the retail price of all merchandise''.

"The local industry is not competitive primarily due to the local duty on retail merchandise,'' he said.

Even if Sears were to open on Front Street, the goods would not sell at prices 17 percent more expensive than in the United States, he said.

Larger retailers were already associated with vast US purchasing and distribution organisations affording them huge buying power, he said.

"Local retailers already have access to extremely competitive prices for most of the higher end merchandise that Bermudians find desirable and the specialty items from overseas that visitors cannot find at home,'' he said.

But the small size of containers required for Bermuda's roads, handling costs and shipping delays also pushed up prices.

Mr. Trimingham warned that unless other industries and professions took on some of the tax burden shouldered by retailers, shops would employ increasingly fewer people.

Bermuda Chamber of Commerce president Mr. Robert Rego also pointed to duty as the prime culprit for Bermuda's uncompetitive prices.

"The duty structure puts us at higher cost than our counterparts in the United States,'' he said.

Additional costs such as high overheads, salaries, hospitalisation, payroll and pension costs also hiked prices.

In the United States, most retail employees were hired part-time but in Bermuda they received more benefits and expected full-time employment.

"The trade off is that it is more expensive to operate. It makes us less competitive but we enjoy a higher standard of living as a result,'' he said.

Mr. Rego also believed that by the year 2000, Bermuda's stores would still be privately owned.

He said they were more individual and appealing to visitors already familiar with US franchises throughout the country.

"We're very unique in that respect and the overseas visitor appreciates that,'' he claimed.

Vice president of HA&E Smith Mr. Alfred Spearing said Bermuda had a limited market that reduced the buying power of local shops. Duties and high shipping costs also contributed to high prices, he said.