DOVER'S revived chamber of commerce will be viable, even though it faces losses of around £8,000 from its failed merger with Kent Maritime Chamber, according to its chief executive.

Dover pumped around £11,500 into Kent Maritime Chamber of Commerce when it joined the four-area group in the summer of 2000, giving up its status as an independent chamber. But local members voted overwhelmingly to quit Kent Maritime, a group that also includes Thanet, Swale and Canterbury.

They backed the branch committee's plan to revive Dover and District Chamber of Commerce amid fears that the bigger chamber was going bust. Ray Haines, back in his old job as chief executive, said the decision had saved the local chamber from being "dragged down". But he admitted that it was unlikely to recover much more than £3,000 of its original investment because assets of the loss-making Kent Maritime chamber had fallen so steeply.

Mr Haines said the financial situation was a setback. But he insisted the 150-year old chamber, the oldest in Kent and the second oldest in Britain, was capable of surviving on its own.

"The Dover Chamber is not going to collapse," he said. "The Dover chamber is going to be viable. We've taken a little bit of a step back, and we have lost some of our cash assets, but we will recover. We were viable before and we'll be viable again," he said.

The chamber's long history had made the branch committee fight to save the chamber in the face of what it believed was a failing situation. "That is why we have de-merged, as we do not intend being dragged down with them," Mr Haines said. He blamed Kent Maritime for a fall in membership and pledged that the revived chamber would halt the slide.

Dover chamber had 160 members when it voted to merge with Kent Maritime, but that figure is now barely 70 members. "We had lost local contact and this is one of the prime reasons for the members' disquiet," he said. "Despite assurances Kent Maritime gave, we had lost the local factor to a large extent and that's what our members want back. That's what we are going to give them."

The revived chamber would fight for Dover and its interests, as it had always done. We have had some significant successes in helping to attract new businesses in and to do positive things for Dover," said Mr Haines. He dismissed Kent Maritime's claims that the situation was improving as "wishful thinking, aspirations and hopes".

Anne Peeks, Kent Maritime's chief executive, said Kent Maritime was recovering financially. She insisted it could survive without Dover but doubted whether Dover could survive without Kent Maritime. Dover members now had to decide whether to stay with Kent Maritime or join the revived Dover chamber.

Large members such as Pfizer, Dover Harbour Board and Reeves and Neylan had already pledged their support to Kent Maritime. She said: "We will carry on servicing our members and Dover will revert to a little town chamber. It's very sad and it's something we could have done without."