Retiring from the Bank of Bermuda after 20 years is executive vice president, administration, Louis Mowbray.

At 63, he is concerned about Bermuda's retail environment, drugs in the community and the need to get more Bermudians a close up look at international business.

He expressed deep reservations about the bid to start a new local bank in Bermuda, which he believes could have serious ramifications for a banking industry that brings $160 million to $170 million in revenue to the Island -- the third largest source behind international business and tourism.

At risk also would be the loss of some of the 2,300 jobs in Bermuda banking, an industry with international players headquartered here.

Any dent in such players would reduce foreign exchange earned by the Island, as foreign banks, for whom the door would open, would prefer to take their profits in their home country.

Mr. Mowbray said, "There are some really big issues here, not just how much one charges for travellers cheques.

"And it would be very difficult for a new local bank, because of the increasing sophistication of systems required for local services. The investment is significant, but possible for existing banks because they are paid for by international operations.

"They can only do it by signing up with an overseas bank, who would never be really interested in domestic banking. So one would have to be very careful to protect what we've already got.

"You look at other islands in the Caribbean for example. All the banking activity is controlled from outside, by British, American and Canadian banks.

"They have difficulty getting attention focussed on their island. They have to go to Toronto to plead with them to do things for their domestic economy.

We have to look at the entire picture before opening up the field.'' The Island's sizable banking infrastructure, along with significant law and "big six'' accounting firms, are key differences separating Bermuda from other offshore destinations.

Mr. Mowbray is leaving an institution that has doubled in staffing to 1,170 people (with an annual $50-million payroll), while activity has increased twenty-fold during his tenure.

But he believes Bermuda can significantly increase the percentage of the population that takes advantage of the international business environment.

"There is a tremendous amount of opportunity, but there are more and more technical requirements. Change is so prevalent that it is no longer a case of going to school and going to work, but rather going to school and then going to work and still going to school.

"Bermudians are having to run faster and faster, like everybody else in the world, to keep up. A lot of people are able to do that, but it is a shame that many Bermudians who have capabilities in these areas, do not use them.'' Mr. Mowbray believes the government should listen a little harder to the suggestion of a sales tax replacing the anachronistic customs duties, something that he believes would breathe fresh life into a sagging retail trade.

He said the world has changed, bringing pressure on pricing and margins because of the accessibility of the same goods from the US, from merchants whose large inventory size provides a distinct pricing advantage.

Improvements in worldwide distribution networks, he said, have also had their effect. And, unlike in Bermuda, tariffs have been lowered in other countries steadying prices.

But he said, "A removal of the customs duty would take a huge load off the retailer, because right now they have to finance their goods up front, and don't get that money back until they actually sell the items, which could be a year later.'' Mr. Mowbray added, "There may be other ways to tackle the problem, but a change to a sales tax seems at the moment to be the best idea. We accept that the government has to raise its money from somewhere.'' "It is not going anywhere in government right now, but it needs to. There are a lot of jobs tied up in the problem that will be lost if firms fail.'' Mr. Mowbray headed the Chamber of Commerce in the early 1990s when the recession began to bite more seriously.

He was steady at the helm when the Chamber became more politically active and proactive, beginning such programmes as Harbour Nights, which continues today as a runaway success.

Louis Mowbray