duty-free tax haven for goods ranging from clothes to jewellery should be considered seriously by Government.

The idea is not new. In the past, Government has reduced or eliminated Customs duties in a number of areas in an effort to make the Island more competitive.

This has enabled some retailers to reduce their prices and has helped the consumer to some extent. But many of the changes have been piecemeal or too small to make a major difference.

The current proposal is much more far-reaching, recommending the elimination of duties ranging from 22.25 percent to 2.5 percent on a wide range of goods.

If it was put in place, it would have some immediate benefits for the retailers, increasing their volume of sales to residents and visitors. In theory it should also reduce the level of overseas shopping, thus keeping more Bermuda dollars at home and circulating in the local economy.

It may be the difference between survival and bankruptcy for some local businesses, preserving jobs and the health of the economy.

It is less certain whether "duty free island'' on its own would lead to more visitors coming to the Island. But taken in conjunction with the other initiatives now being started by the Tourism Ministry and the industry, it is reasonable to assume that it might encourage some visitors, put off in the past by high prices, to return.

At worst, it should see those visitors coming to the Island spending more -- an immediate boost to the economy.

For Government, the only question is how it would replace the $7 million which it earned from the tariffs on the goods last year.

There are no guarantees here. But if the number of visitors coming to the Island did increase -- even by a relatively small number -- then Government would see higher revenues in hotel occupancy and departure taxes. Equally, jobs in the retail and wholesale sectors would be preserved or increased, thus seeing improvements in payroll tax and other revenue areas.

Finally, discouraging Bermudians from travelling abroad to buy goods like clothes and jewellery would have the knock-on effect of making it uneconomic to travel abroad to buy other goods which are still dutiable. They would then be bought in Bermuda, resulting in more money for the Government.

The reality is that many businesses and hotels are on the verge of closing and the costs of not taking such a bold step -- in reduced payroll tax and increased social assistance payments -- are such that this is a move which is well worth considering.

There are no guarantees that Government could recover all of the revenues it risks losing. But there is a real opportunity here to restore the retail sector to its former vibrancy.

The retailers have an important role to play as well. They have to demonstrate that their prices really will fall and they have to show that the variety of goods and the quality of all too often dismal service get better as well. If they fail to pass on savings to their customers, then the whole idea will have been an exercise in futility.