At face value the cost of buying computer equipment is higher in Bermuda than the rest of the world.[AT]bodyindent:But are hardware and software prices really more expensive here compared to North America and Europe?

Dave Bart, general manager of Applied Computer Technologies (ACT), for one, argues that they are not.For example, a computer priced at $1,000 in the US may seem a better deal versus $2,000 in Bermuda, but when you add on customs duty and shipping fees it actually costs about the same.

Mr. Bart said the problem is that more consumers are buying overseas and less money is being spent on the Island, but he claims there is almost nothing which can be sourced abroad that is not available in Bermuda."People are buying from the States for no good reason," he said."It is not cheaper to buy in the US."

He said that while items may appear to be more expensive in Bermuda than the US, for example, it was because of the Island's higher in the cost of living.And while Mr. Bart reckons a big part of ACT's IT customer base and even foreign companies who have set up on the Island buy products from his company, he claims that some Bermudian firms purchase their goods from further afield because they believe it is less expensive.

The cost legacy dates back many years, according to Mr. Bart, who has been in business in Bermuda for the past 10 years, but that was due to less choice and a greater time taken to get the goods in, which is now no longer the case. "We run into it all the time," he said."But nine out of 10 times we are within the competitively acceptable range and the customer says 'Great, I will start buying from you'."

Mr. Bart has called on Government to ease the burden on local businesses by giving tax relief to technology products they bring in or by increasing the duty on similar items consumers buy directly from overseas.He is also concerned that because of the view from outside of Bermuda being a more expensive place to do business, a number of companies are looking at or have already outsourced their IToperations.

"If 100 percent Bermudians and ex-pats are buying locally then there is no problem," he said."All we are asking is that you compare the price and you give us the opportunity to make the cost and distribution check and see how the price compares."

Aaron Smith, general manager of Bermuda Computer Services (BCS), IBM's franchise in Bermuda, said that IBM's prices are the same across the world, so the only additional costs are duty, shipping and handling for hardware and software actually works out cheaper because there is no duty to be paid, whereas in North America taxes have to be paid on software

However, the one area the Island's IT sector really suffers from is the price for technology experts being the same as that of North America, despite Bermuda's higher cost of living, he said. "It is really frustrating when you have large companies who deem themselves as domiciled in Bermuda who buy their IP overseas," he said."There is no benefit financially and they are exposing themselves because you have to service and maintain this equipment and it is very difficult to do that if you do not have an agreement with an IT provider in Bermuda."

"Tax relief on technology goods and services would and should help us maintain a competitive edge for our local businesses and to enable consumers to invest in technology."