Customs duties -- but industry officials said the move was still not enough to compete with foreign rivals.

Finance Minister Grant Gibbons on Wednesday announced a reduction on duty on paper to zero and to 15 percent for equipment and machinery.

He also announced future changes to the Customs duty for the paint industry to reduce the cost of imported goods.

"The printing industry has conducted a thorough review of its operations and has accepted the need for change,'' said Dr. Gibbons. "To facilitate the efforts of printers to compete more effectively, Government considers it appropriate to assist by eliminating the duty on paper for printing.

"The duty rate on machinery and equipment imported for use in the printing industry will be lowered to 15 percent to encourage investment in modern equipment,'' added the Minister.

"These measures are all designed to enhance the competitiveness of local industry and thus support employment.'' A cut in paper duty will cost the Government $170,000 in lost income annually and the move was welcomed by Paget Wharton, general manager of Bermuda Press, a sister company to the Royal Gazette Ltd.

"It is a good step, a step in the right direction for the printing industry.

It was needed in order for us to remain competitive and give the customer value for money,'' he said.

However Randy French, general manager of Island Press, said although he was grateful for the reductions, more was needed.

"I am very grateful for the reductions that the Minister has put into effect.

He has been sensitive and responsive to our industry lobby,'' said Mr. French.

"But my feeling is that more is needed, such as more in the way of incentives in the future.'' He added: "This was absolutely necessary but more is needed in the future.

Fifteen percent on machinery is still too much; that should come in duty free.'' HOUSES OF ASSEMBLY HOA CUSTOMS CUS