illustrate the differing fortunes of two sectors of the economy.

On Wednesday it was revealed that the Island's insurance industry can expect a massive influx of business following the setting up of a new captive insurance company. The company is the first to be established under the new Segregated Accounts Act.

There was further good news for international business on the same day when Kit Astwood of the Chamber of Commerce claimed that sector of the economy can expect to create a further 5,000 jobs in the coming years if the current growth rate continues.

There were concerns that, following the 1998 PLP election victory, businesses based here would begin to look at other jurisdictions from which to run their operation. Clearly those fears have proved unfounded and Government, to its credit, has won the confidence of international business leaders.

Indeed, last Friday's Budget was welcomed by the International Business Association, particularly the move to treat international and local business the same for payroll tax.

In stark contrast, the Island's retailers are struggling and last week's Budget has done little to help them.

Finance Minister Eugene Cox was unable to provide any tax breaks while, according to retailers, increases in taxes on fuel, cars and motorbikes will all add to the cost of running a business.

"We are very disappointed at the Budget -- it is a nibbling away of our business by increasing the cost,'' Charles Gosling, acting chairman of the Visitor Retail Division of the Chamber of Commerce, said.

Clearly retailers are not crying wolf. Figures published in the Business section of this newspaper on Tuesday showed that retail sales for the month of December were down on 1999 by 4.2 percent. Conversely, spending overseas for the year was up by 5.4 percent.

There was further bad news for retailers on Tuesday when Mr. Cox ruled out any possible tax breaks in the foreseeable future. This, retailers claim, went against the PLP's election promise of a duty free Bermuda.

"We certainly can't revue the amount of duty paid at this time -- I don't think that is on the cards for the future,'' he said.

What is worrying is that, while fully aware that retailers are struggling, the Finance Minister seems unwilling to do anything to help them.

His solution? "Once we get the tourists back, the long-term demands of the retail will be met,'' Mr. Cox claims.

The problem with this is that, as Mr. Cox readily admitted last week, there is no sign that this Government is capable of getting the tourists back.

Mr. Cox said that the "less than stellar performance'' of the Tourism Ministry last year is likely to be even worse in the coming 12 months, partly, he claims because of a predicted slowdown in the US and Canadian economies.

The fact that Mr. Cox was forced to cut the Tourism Department's Budget allocation this year will not help.

And if retailers do start going out of business in large numbers, that will only compound tourism woes. A ghost town is not a major draw for visitors looking for somewhere to spend money and enjoy themselves.

Retailers are facing a daily battle to keep their heads above water. For the Finance Minister to offer them some vague hope for the long term -- which itself is not guaranteed -- will be of no comfort to local businesses. They have a right to be disappointed.