Retailers have breathed a sigh of relief over the possibility of opening up the Island to foreign competition.

They were reassured by Minister of Finance Eugene Cox that they would be fully consulted over any possible plans to relax the 60/40 business ownership rules.

And, according to Chamber of Commerce Visitor Retail Division (VRD) chairman Ian Smith, any discussions could be up to two years away.

Mr. Smith said a recent summit meeting between the VRD and the Minister was very successful and had served to calm any fears that wholesale changes could be made overnight.

Retailers were concerned that any change to the ownership laws could open the door to large stores such as Walmart or K-Mart, who could single-handedly kill off the local trade.

Many local traders are already struggling and they feel an international chain store would undercut their sales via cheaper operating costs and economies of scale.

Mr. Smith said: "It reassured a lot of people, people were worried it was here and now. The most encouraging thing was that we have been told by the ministry that we will be consulted all the way.

"At the moment they are looking at the financial sector, then deciding whether to look at other industries, not just retail. Then the consultation process will begin.

"It was a really positive meeting.'' Government is currently looking at the 60/40 rule, and any recommendations are likely to be implemented for the financial sector by 2003, and 2005 for other sectors of the economy.

Changes may have to be made as Bermuda meets directives set out by the Organisation for Economic Co-operation and Development.

It seems likely that there will not be wholesale changes but alterations to allow for improved links between local and foreign companies -- whilst maintaining the protections already in place.

Mr. Smith said members were pleased that a full consultation process was to take place for any changes, similar to the recent counsel that allowed retailers to have input into the new Customs rules.

In the past Mr. Cox has stressed that any alterations to the law would not mean an invasion of overseas chain stores.

GOVERNMENT GVT