$325,000 for the cost of its contract negotiations with the Bermuda Industrial Union.

The cost, which includes a bill of about $250,000 from the HEB's overseas lawyer, has had hoteliers questioning a negotiating process that has taken longer than the three-year contract they set out to make.

"I don't think we can go this route again,'' Bermuda Hotel Association president Mr. David Dodwell said.

"Thank God the Haughton report recommended a four-year deal. Otherwise we'd be starting again in July to prepare for the next contract.'' Last week's report by American professor Ronald Haughton and its acceptance by workers and hotels ended a process of contract negotiation and mediation that began in the summer of 1990.

Hoteliers interviewed described the process as too expensive, too time-consuming and frustrating.

"Hopefully, between now and the time we start negotiating again, a relationship will exist with the union that allows us to reach a contract without having to go to a third party,'' Mr. David Boyd of Sonesta Beach Hotel said.

"I'm not blaming one side or the other. But that's what we must achieve if we're to make the negotiations timely as well as less expensive.'' The $300,000-plus bill is sure to pinch the pocketbooks of an industry which last year reported a $12 million operational loss among its largest properties.

It is to be apportioned by size among the 20 members of the HEB, which acts as the negotiating arm for the Bermuda Hotel Association.

The 403-room Sonesta Beach Hotel, for example, must fork out about $40,000.

The two Princess Hotels, which together have more than 1,000 rooms, should pay substantially more.

The HEB bills include the cost of putting together financial statements and the use of expert witnesses before the Essential Industries Disputes Settlement Board which Government set up to settle the contract dispute.

But the biggest tab members have to swallow is from their long-time lawyer Mr.

Stephen Shawe, who was brought in to represent them before the Disputes Board.

Hoteliers last night declined to comment on Mr. Shawe's fee which in past years has prompted arguments over the wisdom of retaining such high-priced talent.

Criticisms reached a peak in 1989 when Mr. Shawe's charge pushed the cost of the 1988-1991 contract talks to nearly $500,000.

At the time the BHA said many members felt the money was poorly spent and "could have been put to better use.'' Last night, HEB president Mr. Dennis Tucker declined to comment.

"I'm not going to make any comment,'' he said. "It's just going to stir up things. We consider it an internal matter which we're dealing with.'' As a result of the 1989 costs row, the HEB decided to cut back. In December 1990, it started the hotel contract talks using its executive officer, Mr.

John Harvey, as chief negotiator. Hoteliers were to act with him in support.

"John Harvey started negotiations surrounded by hoteliers,'' Mr. Harvey said.

"Our direction was self-determined.'' The approach was apparently satisfactory until May, 1991 when the union rejected a settlement put forward by American mediator Mr. William Hobgood.

The shock rejection of a deal that was ultimately better for workers' pocketbooks than the last week's Haughton award sent a shudder through the Island.

In its wake, Government declared the hotel industry to be essential and passed legislation to avoid protracted disputes and strikes. The hotel talks then went before the new Essential Industries Dispute Settlement Board.

The new situation led the HEB to bring in Mr. Shawe.

Mr. Harvey said: "It was determined that if we were going to go before a board then we needed the services of Mr. Stephen Shawe.''