Duty relief could soon be extended to Island retailers bringing in generators for sale to the public.

The measure, currently being considered by Government, would undoubtedly be welcomed by local residents with thousands of homes still without power yesterday after the Island was hit by Hurricane Fabian on Friday.

Rod Ferguson, chairman of Bermuda hardware store Gorham's, told The Royal Gazette yesterday afternoon that Government was considering suspending at this time the set rate of 22.5 percent duty on electric generators. The end result could be significant savings for customers - Gorham's said the relief would allow it to shave $400 or more off the sales price of each generator it sold.

Word is expected from Government shortly, with Premier Alex Scott reportedly telling Mr. Ferguson in a telephone conversation yesterday afternoon that the idea deserved serious consideration.

Mr. Ferguson said: "I told Mr. Scott that Gorham's would be able to take off $400 or more on the (retail sales) price of every generator that we sell. He (Premier Scott) thought it was a marvellous idea - and deserved serious consideration. He will be taking it to the Minister of Finance who has to have the ultimate say over matters to do with Customs. But Mr. Scott thinks it makes sense."

Mr. Ferguson added that the cost for certain storm supplies snapped up by residents before and after the storm, such as tarpaulins, were covered by insurance but generators would not be. The machines, which have been in short supply and high demand since the storm, allow homes an interim electrical source to power lights, running water and appliances while Belco works to restore systems badly battered by Fabian.

A number of Bermuda companies - including the Bank of Bermuda and ACE Limited - were reportedly addressing the plight of staff still without power by bringing in generators from overseas and passing them on to employees at cost. Vice-president and community and government liaison manager at the bank, Clement Talbot, said a number of generators were being imported for staff from American hardware chain Lowe's at a significant savings over local prices.

Mr. Talbot said he and Bank of Bermuda president Henry Smith hatched the idea to bring in the units as a means of helping out staff still without electrical power in their homes.

He said the landed cost for each unit - 5,550 watts generators - including the cost of air freight was $823. This compared to $2,200 being asked for similar units - 5,500 watts generators - by at least one Island hardware store. After reports of price gouging with inflated prices being asked for Bermuda slate, some also questioned yesterday whether stores had raised prices for storm-related supplies after Hurricane Fabian. However, at least one retailer said all prices had remained the same even though the cost of importing the goods quickly meant it was making less of a profit on sales.

Gorham's chairman Mr. Ferguson said: "We have not changed any prices, not for batteries, not for flashlights, not for generators. And in some cases we are ordering directly from stores, not a wholesaler, in order to get goods more quickly. This means our cost can be five to 12 percent higher. But we are not looking to raise prices, we just want to help people," he said.