MPs voted to extend duty relief for restaurants to March, 2009 yesterday after noting the success of the measure in encouraging investment.

The Restaurants (Temporary Customs Duty Relief) Act 2002, which gives duty relief for establishments upgrading their facilities, had been due to expire on December 1.

Finance Minister Paula Cox said there had been nearly $2 million worth of investments since the act had been passed with $430,000 of duty relief granted by Government. The bill mirrors similar concessions for hotel investment.

She pointed out the act applied to and had been used by small traditional restaurants such as the Green Lantern and Double Dip Express which added options for tourists.

Opposition leader Grant Gibbons welcomed the bill but said it prompted questions about whether the measure would become permanent.

Duty was a revenue resource which if diminished could mean a greater burden on the taxpayer he said.

PLP backbencher Derrick Burgess said employers were getting concessions at the same time as paying their staff low wages, refusing overtime rates for extra hours and shortchanging them on gratuity share-outs.

Opposition MP David Dodwell said $2 million of investment was an impressive figure.

He called on Government to consider some kind of concessions for Bermuda?s retailers as the next step in the route to upgrading Bermuda?s product.

Community Affairs Minister Dale Butler, who declared his interest as a director of the Little Venice Group, voiced his support of the amendment.

Many restaurateurs are facing difficulties not in attracting clientele but in attracting staff, he said, and many may be considering closing their doors within the next few years.

Workers, especially young Bermudians, are more drawn to the perks and salaries of careers in other sectors than in the hospitality business.

Amendments such as this one will help to act as a motivator for restaurateurs to stay in business and target Bermudian staff, he said.