Year bid for industrial peace.

Yesterday, Premier the Hon. Sir John Swan warned that the Island faced catastrophe without a hotel industry fightback.

And he sent out a rallying cry for union brass and top hoteliers to unite for the Country.

The wide-ranging February 10 talks mark one of the most ambitious ever efforts to thrash out a peace strategy -- and pave the way for the future.

They come amid growing concern at the hammering meted out to hotels by the recession.

There are fears a major hotel will close unless there is a resurgence soon.

Tension has also heightened following repeated claims of a Government-led conspiracy to bust the BIU.

And earlier this month Pink Beach severed links with the union, and chief shop steward and PLP candidate Mr. George Scott was laid off from Marriott's Castle Harbour amid claims he was fired for political reasons.

"It's absolutely critical for the survival of Bermuda that we safeguard the industry,'' said Sir John yesterday.

"If we don't then there is going to be a disaster. It's important all parties come together.'' He added, however: "I am optimistic there will be a coming together to sort out all the problems.'' Sir John said the meeting was the "first of its kind'' to resolve industrial conflict.

Present will be Sir John; Finance Minister the Hon. David Saul; Labour Minister the Hon. Irving Pearman; Tourism Minister the Hon. C.V. (Jim) Woolridge; and Minister of Management Information Services the Hon. Mike Winfield.

Hoteliers and Bermuda Industrial Union leaders, including president Mr.

Ottiwell Simmons, MP, will also attend.

No venue had yet been fixed, and no decision made whether it will be public.

The meeting follows talks earlier this month between top hoteliers and Government ministers.

Sir John reported the tourism slowdown was hammering hotels, with revenues sliding and bookings stagnant.

Slashing business costs was seen as the way forward -- and Sir John hinted at possible tax breaks for hotels.

In a statement afterwards he said: "The hotel owners had no good news for us.'' He also moved to stamp on claims Government was conspiring with hoteliers to break the BIU.

"Nothing could be further from the truth. We are trying to find ways to resolve problems so that the industry survives the crisis.'' Yesterday Sir John said the full agenda for the February meeting had not been decided.

But the talks would cover the whole spectrum of the hotel industry.

"We will discuss where the industry is and where it needs to go. We will discuss what benefits the union wants for its membership.

"There are a whole host of issues which need to be discussed. The aim is to find some common ground.

"After all, the hotel industry is our biggest employer. Directly and indirectly it accounts for about two-thirds of the jobs on the Island.'' It is almost inevitable the Essential Industries Disputes Settlement Board's imminent ruling on the BIU-HEB contract wrangle will feature prominently at the meeting.

But Sir John said chairman Prof. Ronald Haughton's decision would only impinge on part of the hotel's troubled scene.

"There are many other things to discuss,'' he added.

Asked how long the meeting would be, Sir John replied: "That hasn't been settled. It depends on what the content is.''