electric vehicles.

That is the view of Bermuda Motors Managing Director Mr. David Gibbons, who revealed that the company has been testing a revolutionary new electric bike for months.

And Mr. Gibbons believes that the Government's decision to exempt "motor vehicles powered by electricity'' from import duty will mean he can now try to persuade Ford and Toyota to use the Island to test their prototypes.

However the budget decision was dismissed by another motor dealer who feels that electric-powered vehicles will not be on the market for some time.

He said that the electric vehicles at present are proving expensive, with bulky batteries leaving little room for passengers and would only be able to travel a maximum distance of up to 100 miles.

In the Budget Speech, Finance Minister the Hon. Dr. David Saul said: "Recent developments in the field of electric transportation have resulted in electric vehicles becoming more attractive as alternative vehicles for Bermuda.

"These types of vehicles hold considerable potential for energy conservation, particularly when recharged by solar panels and could also assist significantly in reducing exhaust and noise pollution.

"To encourage Bermudians to experiment with this form of transport, it has been decided to exempt from duty the import of passenger motor vehicles powered by electricity.'' Mr. Gibbons: "I would hope that I could now speak to Ford and Toyota and say Bermuda is the perfect place for testing these prototypes. Distances are short and electricity is easily accessed. They would not be suitable for testing over long stretches between US cities.

"There are several companies that have these electric vehicles in the prototype stage.'' Mr. Gibbons said that he cannot yet reveal the company that is producing the bike Bermuda Motors is now testing on the Island.

The other major dealer said: "A lot companies are experimenting but at present these cars are too expensive for general use. That is still some distance away.

"Technology is such that they can only run for a short distance. I think the maximum so far is 100 miles. A number of batteries are needed so there is little space. I know of no major manufacturer who is ready.

"I think the Government has done its homework on this and offered this exemption because it is an election year.

"Do you really think the Government would make its biggest source of revenue, which comes from the import of vehicles, tax free?'' He also pointed out that the low costs of fuel made it unlikely that the world's motor dealers would find it worth their while to proceed with electric cars.

One Bermudian resident showing a great interest in solar-powered cars is Curator of the Natural History Museum, Dr. Wolfgang Sterrer.

Dr. Sterrer is awaiting solar-powered cars going into general use and then is hoping to import one. He hopes to have the car in a year's time.

He said: "They have not built a solar-powered car from scratch yet but they have converted gasoline cars which are really too heavy. I think Bermuda would be perfect for a solar-powered car.''