Business leaders in Bermuda last night spoke with some optimism about the future of the Island's economy - and urged the community to have confidence and spend.

The public forum organised by the Bermuda International Business Association (BIBA) heard that although a recession was looming over the Island, it may not be as bad as at first predicted.

The message was that the people of Bermuda had to pull together and communicate in order to make it through the hard times.

And it was estimated that an economic downturn could begin on the up again by mid-2002.

Panelist Charles Gosling, president of the Bermuda Chamber of Commerce, urged people to help the Island pass through a recession with the minimum of impact by spending their money on the Island. He said the chamber was in a number of discussions with its members and other organisations to see how businesses, including retailers, could be helped at this time. "We are looking at what we can do to create revenue in the local market," said Mr. Gosling. "We are visiting the Minister of Finance tomorrow to encourage the funding of a Buy Bermuda promotion. 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."

And he said if people were planning to take a holiday, perhaps they should consider holidaying in Bermuda instead, and spending their money on the Island, instead of overseas.

Raymond Medeiros, chairman of BIBA, said the public should be prepared for some rough times ahead, but said the general belief was that Bermuda was strong enough, and had plenty of talent, to overcome any difficulties that lay ahead. And both Mark Herman, president and CEO of Ace Bermuda, and Henry Keeling, president and CEO of XL Re Ltd, said they did not believe any of their staff would be laid off - but instead additional people may be taken on. Although they said the insurance market could not provide the same cover should terrorist attacks of such mass devastation continue to occur, they said they were each more than prepared for the onslaught of claims in the next few weeks from the attacks at the World Trade Center, the Pentagon and in Pennsylvania.

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Mr. Keeling said: "I don't expect in any way to be laying people off as a result of this. One of the perverse aspects of the insurance industry..... is that we see a huge increase in the demand for the product that we sell. We will need more people to respond to this, rather than less."

And he said that could also result in an increase in the number of business travellers coming to Bermuda.

But none of the nine panelists denied that there may be people who lose their jobs, especially in the hotel, tourism and service industries.

Chief operating officer of the Bank of Bermuda Philip Butterfield said his staff were offering advice and counselling to businesses and individuals on the Island and said people should talk to their bank if they run into trouble.

He said each case will be treated on its merits, but the bank will do all it can to assist people in trouble with mortgages, loans, business debts and so on.

He said: "We will manage the business in a more controlled disciplined manner - we will manage the balance sheet not the income statement. We will concentrate on business fundamentals.

"We will stay close to our customers, both commercial and individual, providing advice and assistance to ensure not only their survival, but their success.

"We will monitor Easylink transactions, credit card utilisation, account opening, closing and balances, transaction flows, loan/mortgage payments - all directed toward understanding client need and behaviour. "This will position us to be pro-active in our local market."

About 200 people turned out for the forum last night, including business leaders, workers, students and members of the United Bermuda Party. However, no member of the Government was present.