retailers for their criticisms that BIBA members pay a lot less in taxes than retailers.

BIBA chairman Tom Davis said efforts by retailers to invoke public sentiment was "disrespectful'' of the political process.

In the December issue of BIBA's newsletter, Mr. Davis voiced concern about retailers who placed a series of newspaper advertisements highlighting the differences in their tax bills and those of BIBA members.

The chairman's report conceded: "We accept that there are difficulties for this sector of our industry and are prepared to enter into discussions with the retailers, the Ministry of Finance, and indeed, any other interested parties on this matter.

"We feel, however, that it is entirely inappropriate to do so without following the established due process. In this matter, which is one of fiscal policy, due process necessarily involves discussions under the auspices of the Ministry of Finance, which is the governmental body responsible for the setting of fiscal policy.

"To pre-empt this process by attempting to invoke public sentiment through the medium of the press is, in our view, somewhat disrespectful of the political process and contrary to the commercial and public interest of Bermuda.'' Mr. Davis said that BIBA was already on record as being supportive of an overall review of the tax system, and against a piecemeal approach to tax reform.

He noted: "International business and tourism both need to be internationally competitive. The international marketplace will dictate the amount of tax that can be levied and we in turn need to ensure that our public expenditure is in keeping with the tax revenues that are collected.

"What is clear is that the transient nature of international business and its ability to leave Bermuda very easily is still not fully understood by all sectors in our community. What will become clear, if we are not careful, is that our competitors do have such an understanding.'' The sixth advertisement, published last Tuesday, was headlined "No Room for Free Rides'', claiming that BIBA members and the exempt companies they service were getting a "tax-free ride''.

Another complaint was that some of the best paid in the financial industry hand over payroll tax on a fraction of their income.

There was also a suggestion that government should seek to raise half its required $400 million in revenue each from tourism and BIBA.

The advertisement last week was attributed to "an ever-increasing number of concerned retailers in Hamilton, St. George's, Somerset and Dockyard.'' It also contained an indication that a seventh advertisement would discuss the potential for increasing lay-offs and unemployment.