Government is throwing its weight behind a campaign to encourage locals to shop on the Island - with a $49,000 promotional grant to the Chamber of Commerce.

The programme might be followed up with payroll-tax relief for retailers most affected by the September 11 attacks on the United States.

Bermuda Chamber of Commerce president Charles Gosling last week told The Royal Gazette that the Buy Bermuda campaign had been accepted by Finance Minister Eugene Cox after the Chamber presented the concept to him.

"I would certainly say we are going in the right direction," Mr. Gosling said.

He said the support being offered "extremely useful" and was enough for a robust six week campaign to promote "the various reasons for buying in Bermuda."

The promotion will start in the middle of this month and last through to the beginning of December.

"We can do a very effective campaign in that period. It also opens a lot of doors for retailers to match this investment with store specific, brand specific campaigning," added Mr. Gosling.

"In general, we believe there's a lot of value, a lot of good deals leading up to the holiday season," said George Grundmuller. "Retailers will certainly do their part to make shopping locally attractive."

Mr. Grundmuller, who heads up the Chamber's retail division, said that for many retailers the Christmas season offers the only hope for survival. Since the September 11 attacks which sent the US economy into a tailspin and has kept many from flying, Bermuda has been fearing a major economic downturn.

Immediate effects were felt by the retail and hospitality sectors which have been hard hit by hotel cancellations.

"The tourist season ended September 11," said Mr. Grundmuller. "So the only hope is Christmas and what we need to do is mobilise locals."

He added : "For many of our members right now it's a matter of survival. If Christmas is weak it will be difficult for many to stay in business."

He couldn't say how many retailers were on the brink of survival. But "to shorten the tourist season by eight weeks was a big blow for many businesses," he said. "They are pinning their hopes on Christmas. We hope everyone makes it through."

He said the Buy Bermuda campaign was just the tonic to boost consumer confidence. "At the same time it needs to be competitive on the retail side" and consumers can expect to see lots of good bargains" on the Island.

The Chamber of Commerce has also been informed by the Finance Minister that he is actively considering some form of payroll tax relief for some of the hardest hit businesses.

Government has already provided assistance to airlines serving Bermuda with a two month deferral of charges and fees, as well as a two month waiver of office leases.

Mr. Gosling first announced the Buy Bermuda campaign, and his intention to ask Government for funding, at a public forum last week. He said then that "the purpose of this programme is to encourage the leaders of Bermuda, political, social and commercial, to take ownership and sell the concept of Buy Bermuda - the dollar you put in the hand of a Bermudian will be spent by another Bermudian, and so on.

"We are hoping to extend this with the help of the Bermuda Hotel Association and the Bermuda Alliance for Tourism to a Take a Holiday in Bermuda campaign, again with discounts and a vlaue-added programme."

While appreciative of Government's support and fairly confident at the chances of the Buy Bermuda campaign, no one at the Chamber is under any illusions.

"Hopefully it will have a positive effect on the economy," said Mr. Gosling. "At the same time if we find the response is not positive enough then we might have to go back to the Minister."