Government treats businesses, the National Liberal Party has demanded.

Last week Government announced it had set up a Consumer Protection Task Force to review safety of goods, unfair practices, debt collection, trade descriptions and misleading advertising.

But Gilbert Darrell, the NLP's immediate past chairman, said his Party had reservations about what the task force would accomplish.

He added: "Many merchants will argue that they feel they are the ones being ripped off when they are forced to sell merchandise at large discounts and, sometimes, below costs after they have paid the full duty.'' Community and Cultural Affairs Minister Yvette Swan set up the task force last week with former Parliamentarian Sir John Plowman as chairman.

Its aim is to beef up existing legislation protecting shoppers' rights and a report should be ready within six months.

Mr. Darrell suggested the focus of the group should be changed to examine why businesses in Bermuda were failing.

"The NLP suggests that a Government priority should be an investigation into the reasons businesses are failing or have already failed,'' he said.

He suggested the Payroll Tax was a contributor to business failures as it had nothing to do with profitability.

"It is a very regressive tax as it has nothing to do with the income or profitability of the business being taxed. In fact, businesses are penalised for creating jobs,'' he said.

Mr. Darrell said most of the goods imported into Bermuda were subject to duty, but a merchant could have items left unsold and sitting in a warehouse -- yet Government had still collected its tax.

"Under these circumstances it is understandable that the merchants feel like they are the ones being ripped off by Government, and have been for decades.

"The NLP totally supports consumer protection but feels that Government must balance this protection with active support for entrepreneurs who are a vital part of our economy,'' added Mr. Darrell.