If the National Liberal Party does not do well in the next General Election it will be "tremendous moral blow''. So said the former chairman of the NLP, Mr.

Graeme Outerbridge, who has just resigned from his post after four years.

But Mr. Outerbridge vowed to keep fighting for the NLP and said he will continue to stay in the ranks of the party as a parliamentary candidate and the tourism spokesman.

And he is confident that the NLP will make gains in the election, which must be called in the next 12 months.

Speaking of his resignation, he said: "I decided it was time for a change and to allow someone else a chance. I have been the longest serving chairman since the party's inception.

"I really need more time to concentrate on standing for Parliament in the Smith's South constituency, where I will stand for the third time. I will also remain a member of the executive.

"I have learned a lot in the last four years by listening to my political colleagues.

"We have managed to recruit a lot of new people who are action-orientated and willing to go out and work for the party.'' Mr. Outerbridge believes that the NLP badly needs to make a good showing at the next election but he said that goes for the Progressive Labour Party as well.

He said: "We have never been better prepared for an election. The party is stronger and we have new people who brought along new skills. So if we do not do well it will be a tremendous moral blow.

"It will be a watershed election. Less extreme members of the PLP will be looking seriously at the policies if they do not win.

"I cannot say how many seats we are looking to win but we have a strategic plan of where we will fight. The NLP could make up a future Government because we are the only liberal party in the Island.

"The PLP is really a one-race `blacks in Parliament' party while the UBP is for the wealthy and merchant classes. We are the only virgin party.

"The NLP is an innovative party and we try to become involved in introducing strategic legislation. Unlike the PLP who tend to criticise without offering any solutions.'' As an example he mentioned the lowering of the voting age to 18 which had failed to include anything about absentee ballots for students at college overseas. The NLP pointed this out and the Government are now looking into it.

Mr. Outerbridge believes that the close results in Smith's in the last election could mean victory for the NLP in the forthcoming election, although he said that Government had attempted to win votes by carrying out a number of projects in the parish.

He said: "I am sure people are not naive enough to be taken in by that. The Government in office always has the power to make things happen when they wish.'' Mr. Outerbridge praised the Minister of Finance's Budget but said that the timing was wrong. He said: "This was a budget that should have been introduced at the start of a recession, not when we are coming out of the slump.'' The NLP are in the unfortunate position of being sandwiched between the two main parties, who claim a vote for the NLP is a vote for the other main party.

But Mr. Outerbridge says that voting for the NLP will, eventually, lead to a truly democratic party in Bermuda.

The party, he says, is the only one that has a policy to consider Bermudian status for foreign workers who have been on the Island for long periods of time. He particularly stressed the importance of the "beleaguered Portuguese community.'' Mr. Outerbridge has been replaced as chairman by Mr. Geoff Parker. He said: "I have known Geoff Parker since we were at Saltus Grammar School. He is different in that I am a theoretical person while he is a great nuts and bolts man. He always gets the job done.'' GRAEME OUTERBRIDGE -- Just resigned as chairman of the National Liberal Party.