local and overseas shopping. The debate is not much different be the overseas shopping by mail-order, in a mall or at a chain store.

There is no doubt that large malls and huge chains offer a diversity of choice and a price variety that Bermuda's stores, even taken together, cannot offer.

But price is a different matter.

Basically, higher prices in Bermuda reflect Bermuda's tax structure and not excessive mark-up by local stores. As an example, Bermudians often complain about the price of appliances but the import duty is enormous whereas we think stoves and refrigerators should be duty free as basic to living. Import duties and not income tax pay to run Bermuda. Americans shopping in their shops have had their paycheque taxed for income tax while Bermudians pay taxes in the shops which have already paid the duty on merchandise. The beauty of Bermuda's system is that everyone other than Bermudians who go shopping also pay Bermuda's taxes.

We know that there are instances of rip-offs and that sometimes there is a very valid complaint. But rip-off business practice happens in the US and some of those who shop abroad get badly stung too. If you buy it in a mall in King of Prussia, Pennsylvania, and it does not fit or does not work, it is hard to take it back but Hamilton merchants will take it back tomorrow.

Mr. Eldon Trimingham understands merchandising and Mr. Trimingham says, "I do have a problem with the fact we are on an uneven playing field with mail-order businesses. We have to pay over 20 percent duty on everything we import, a duty which US shops do not have to pay.'' Mr. Trimingham is correct.

There are other cost problems locally including shipping costs, high rents, very high electricity charges and high wages. But mainly, local businesses which are confined by Bermuda's size are smaller and cannot hope to deal in the high volume cost-cutting used in the US.

Generally prices in the US are not a great deal better than prices in Bermuda if you compare like with like. Too often shoppers do not make good comparisons. But we should understand that the US has its problems with malls and huge chains and the whole US retail structure is being changed by giants like Wal-Mart and K-Mart. That's what happened to Gimbel's and that's what's wrong with Macy's.

Whenever one of the giants with low prices opens outside a US town, it empties the main street stores. Many US main streets are dying or being redeveloped for just that reason. When Bermudians shop abroad at these huge chains they are doing much the same thing, emptying Front Street and we think that without the visitors for support many of Bermuda's best stores would now be gone.

Front Street is unlikely to move because the cruise boats dock there and there is really nowhere else in Bermuda to go but we have seen diversification to Paget, Collector's Hill and Dockyard. We will see more, especially if it becomes any more difficult to park in Hamilton.

But there is one huge difference in Bermuda which too often gets overlooked.

When Americans shop in the chains and the malls they are paying the wages of Americans. When Bermudians shop abroad, they are depriving Bermudians of wages and of income and supporting American business and American workers.