A NEW Marketing group looks set to be launched in Petersfield. But this week traders have been warned they will have to give it financial backing if it is to succeed.

Petersfield Mayor George Watkinson has been acting as go-between in a bid to get agreement between the current Petersfield Marketing Limited directors, who want to stand down, and the new team calling itself Associates of Petersfield Enterprises (APE), who are hoping to take on the job.

He said his greatest concern over the new marketing group was the level of support it could muster from traders. "I hope they will provide support because Petersfield needs marketing, and the traders need support to promote the town and get shoppers into it. I hope the traders will keep their word and produce some money."

Negotiations reached an impasse last week when the two sides failed to agree terms to take over the £5,000 in the Petersfield Marketing Initiative's coffers.

But this week Mr Watkinson said the current directors had given their verbal agreement to a way forward.

He hoped criteria for handing over the money could be worked out by district and town councillors by September 1, with a view to giving the new group the go ahead at the start of October.

But he warned that East Hampshire District Council wanted to see support from businesses in the town.

"Councillors will need to see that the the new group has got the traders on their side by putting their hands in their pockets to support this new group," he told The Herald.

APE claims it has between 60 and 80 traders ready to give their financial support.

"One of the criteria required by the district council is going to be that clear indications are given that money will be coming in from sources other than just the district and town council."

"APE needs to understand that the district agreed to fund the current PMTI for three years until it had got onto its feet and that time is now up."

Mr Watkinson said it was vital for them to get up and running as soon as possible to give traders a kick-start in time for Christmas.

And he warned that a good show for the town's Christmas lights should be high up in the list of priorities.

"The Christmas lights were taken on by PMTI and the town council would expect the new group to carry on with them. They do need to provide decent lights on the Christmas tree, I think it may be their prime priority for this year."

The town council had some funds for the festive lights, he said, but it would need to see the money was being used for a "worthwhile" Christmas lights project.

It was also vital, claimed Mr Watkinson, for the new APE group to be given the

lease to run events in The Square, which

had returned to EHDC when the previous town manager Steve Johnston stopped working for the PMTI.

"There was some unease among the existing directors about handing over the money because they have a legal responsibility for it," Mr Watkinson told The Herald this week, "but we have come up with a compromise that the district council will act as broker and hold the money until the new organisation comes up with a business plan that meets our criteria."

The way forward was agreed after a meeting between Mr Watkinson, EHDC's economic development and tourism manager, Mike Gibb, and portfolio holder, Guy Stacpoole.

"I have said I would expect the town council would wish to see the same criteria laid down for the new group as existed for the PMTI," said Mr Watkinson, "and that would mean the forming of a limited company with directors, auditable accounts and a business plan, which would have to be acceptable to both the town and the district council."

Mr Watkinson said he had spoken to current directors Maggi Bennett, Trevor Boyden and Trevor Towner, who had given their verbal agreement to the proposal.

Mr Boyden confirmed that the directors had given their verbal agreement, but he added: "We are anxious that the funds held by the district council are ring fenced and used for the specific purpose of marketing Petersfield only."

Sal Cardu, the businessman heading the new group, told The Herald this week: "I am very encouraged by the news from the town and district councils. Our main priorities at the moment are to organise a membership drive and providing some effective Christmas lights."