LEGISLATION granting restaurant and bar owners relief from Customs duty was yesterday applauded by their division of the Chamber of Commerce, but described as only the first step of many needed before they could provide the level of service expected in a high-end destination such as Bermuda.

And the owner of one establishment, who spent $300,000 on improvements and duties in March 2001, questioned Government's decision to backdate the temporary legislation only until January 1, 2002, claiming it was unfair to himself and others who had upgraded their premises before that date.

"We're not looking for thousands in savings but if company 'A' gets it, company 'B' will obviously want it too," said Walter Simmons, co-owner of Monty's Restaurant on Pitts Bay Road. "Our goal is to provide excellent service and excellent food and (our improvements) were all part of that.

"I just think it should be seen to be benefiting everybody, and the perception is that it's just the big boys that are benefiting from it. We all know it's the big boys who have the money and we little boys want part of that pie.

"Bermuda Restaurant Limited through (the improvements they've made to) Barracuda Grill will get it. Cafe Lido will get it. It would be nice if we could all benefit from it. We didn't know it would be backdated at all. Why was it backdated to January 1? Why not make it law from the date the Senate decided to sign?"

The (Temporary Customs Duty Relief) Bill 2002 is to expected to lose the Customs an average of $400,000 in revenue each year of until it expires December 31, 2004. Its aim is to raise the quality of the island's restaurant facilities. The legislation, which was passed without opposition, is similar to the Hotel Concessions Act which assisted hoteliers in improving their properties for 11 years.

"I have read a copy of the actual draft," added Mr. Simmons, "and it appears there is a clause in it in which the renovations can date back to 1997. But we're not sure that there is an actual clause and if there is (how it's meant to be interpreted).

"If (Monty's) is not included, I am going to be upset and will be making calls to my Member of Parliament to voice my opinion. Our renovations were something we planned to do whether the bill came into effect or not. We spent over $300,000, we made a major investment, and it shows. But I thought, and everyone assumed, that (the exemption) would begin when (the bill) was signed into law."

Philip Barnett, chairman of the restaurant division of the Chamber of Commerce and owner of Barracuda Grill and Pickled Onion restaurants, said he was aware of Mr. Simmons' concerns. Pickled Onion, he said, was in the same situation, having undergone its renovations before January 1, 2002.

And, he added, that while he and his members were pleased to see the legislation passed, there were many more issues that needed to be dealt with before restaurants and bars were able to operate to their fullest potential.

"Ever since we were made aware of the Hotel Concessions Act we said we were operating on an unfair playing field and so we welcome the news," he said.

"It was a very hard battle fought by my predecessor, Jay Correia. The Barracuda Grill has already taken advantage of that. We knew legislation was going through and knew that (Cafe) Lido had taken advantage of it and in the Chamber of Commerce meetings we've had, I know many (others) are looking to do so as well.

"It's significant when you pay 22 to 33 per cent duty on a lot of equipment. You're literally talking about tens of thousands to hundreds of thousands of dollars. And as there's no equipment on the island we can buy, you have to add the cost of shipping on top of that.

"It's nice to be able to check off one issue that dramatically affects the cost of business on the island but there are other issues that I hope to address on behalf of our membership as well. We recently sent out a survey and immigration is a major concern - our inability to attract any Bermudians foremost, and the difficulties we have trying to bring overseas people in.

"The bottom line is that Bermudians aren't interested in the business, and in this business, you can't wait three months to get a waiter. Either you lose business or give poor service. In other countries, they have the luxury of bringing in someone new by the end of the week; in Bermuda, if it's by the end of two months you're lucky. We hope that Government sees that and understands that and (does what it can to) allows us to better serve people."

As past chairman of the restaurant division of the Chamber of Commerce, Jay Correia played a great part in the Bill's passage and said that his restaurant, Swizzle Inn, would certainly benefit from it.

"We didn't do anything major this year, but we are intending to give parts a major facelift next year," he said. "The (bill) enables us substantial savings when you look at the cost of refurbishing a restaurant. Restaurant equipment can be very expensive - the stoves, the electricals, the furniture - and all the restaraunts I've spoken with see it as a very positive step.

"It certainly gives us the impetus to go ahead and make changes. I think all of us recognise that, as we can, we need to invest in the future. We all need to buy into the idea of providing the best possible facility for guests coming here keeping in mind, especially, that we are an expensive destination."

More importantly, added Mr. Barnett, the bill would help put many of Bermuda's now-suffering restaurants in a position where they could achieve a positive cash flow and keep locals in the industry.

"Refurbishing the kitchen is the most expensive part and it's the part no one sees," he said. "And then there's the physical amenities - the part seen by customers. Many restaurants have passed on to me that they've lost money in the last year and were not making any significant profits over the last couple of years.

"Major restaurants, and I won't say which, have had their profits halved. We need to make sure we're giving our clientele back what they deserve but when you consider the prices we need to charge to cover the high labour costs we incur in Bermuda, it becomes difficult.

"I have people asking, 'Why should I bang my head any longer (when I can) go and work for an international business. And we don't want that as an industry because we're very proud of what we do."