Finance Minister Paula Cox said yesterday it was unfortunate that one of the Island?s largest retailers was closing its doors, but said there was no indication that the sector was troubled enough to need duty relief.

Ms Cox was asked if Government might give renewed consideration to extending lower duty rates to retailers after the announcement on Tuesday that Bermuda?s oldest retailer ? Trimingham Brothers Ltd. ? is closing its doors in July after 163 years in business.

Retailers have been lobbying for several years for lower duty rates and/or concessions similar to those extended to hotels and restaurants which give duty relief for materials brought in for refurbishment.

Last year and again this year, retailers did not get that wish with Ms Cox telling the sector in 2004 that they had largely recovered from a decline in business from 2001 and did not need the break.

But some retailers this week said the announcement that Trimingham?s would close should be a strong wake-up call to Government that all is not well.

The closure is to result in about 220 job losses.

Retailers speaking with this week said they were trying to keep prices in line with those of North American competitors while they also had to grapple with paying shipping, duty, payroll tax and mandatory pension contributions as well as the increasing cost of doing business in a high inflation environment.

Some retailers ? including Trimingham?s ? had called for a change from Customs duty to a sales tax, in which tax on goods would be paid after the sale rather than when imports were landed in Bermuda, which tied up retailers? cash flow long before goods were sold.

Government has largely resisted the calls, in large part because of concerns over the complexities of collecting and enforcing the tax.

In recent months, numerous Bermuda businessmen have warned that Bermuda?s prices are rising so quickly that it risks pricing itself out of business.

Yesterday, in a written response to questions from Ms Cox said asking Government if it would reconsider its rate of duty for goods imported by shopowners presumed the tariff structure was the main reason behind Trimingham?s decision to fold.

?Such a presumption is unsound.

?While it is most unfortunate that a large retailer has taken a business decision to exit the retail sector, there are many other retailers that remain in business within the existing tariff structure,? she said.

Ms Cox said in the House of Assembly yesterday that while Trimingham?s closure would have an effect on the dynamics of the local retail sector, she felt other opportunities would emerge in the long term.