The concept of a bonded warehouse at Ship's Wharf would significantly help car importers, according to one who has paid millions of dollars in duty for cars he hasn't yet sold.

HW&P managing director Don MacKenzie concedes he's thought about the issue quite a lot.

A fully-controlled bonded warehouse, he believes, is a winner -- both in terms of continuing to guarantee the collection of Government duties, and providing retailers relief from payment until the point of sale.

BLDC CEO Carl Musson said, "Think of cars and the amount of duty sitting up at Holmes, Williams & Purvey (HW&P). There's probably $10,000 of duty on each car they have in the showroom.'' Mr. MacKenzie estimates his firm has some 350 cars and trucks on the Island at any one time that have not yet sold.

By Mr. Musson's estimate of $10,000 per head, the Government is perennially into HW&P's pocket for about $3.5 million.

Mr. MacKenzie would only say, "It's a lot of money.'' He noted, "We also have duties payable on parts. And here too, you have duty paid on product, some of which is never sold.

"The advantage of a bonded facility is that if retailers had product they couldn't actually sell, they can keep them in the bonded warehouse and perhaps ship them back off Island, without having the duty burden.

"The problem with the current system, is that you pay the duty, whether or not you sell the product. It puts an additional strain on companies like us, who are trying to have a wide availability of product and parts on hand, but having to balance it with the fact that we pay the duty up front, whether we sell or not.'' He said he would support more discussion on such a plan with Government, other retailers and other interested parties.

"I think one challenge for this type of building,'' he said, "would be the initial funding for it, because somebody would have to build a consolidated facility, with sophisticated inventory tracking and probably accommodations for a customs presence there.'' And while Mr. MacKenzie concedes the preferability of a central facility for such a bonded warehouse, he is not averse to the consideration of Ship's Wharf.

He said, "It's a function of the cost saving. If you save significant duty, you weigh back the cost of extra transportation. But there are a couple of issues.

"There are extra transportation costs of not having your product stored centrally. But there are also issues in terms of the impact on traffic, with containers moving from there.

"There is also perhaps a political issue, as well, and the relocating of the main container port out of Hamilton.

"I can't speak for others, but the logistics of storing the cars over there for us, works well. Others may have other warehouse requirements, but we are pro-support for further discussion on the idea.''