A mixed reaction yesterday greeted Finance Minister Eugene Cox's first-ever Budget.

Struggling retailers were disappointed by no commitment to cutting costs for local companies with duty-free shopping and reductions or changes in import duty.

And the restaurant and nightclub chiefs were not popping champagne corks either.

But the booming international company sector welcomed the theme of no new taxes and a promise to peg the cost of doing business in Bermuda.

And -- although still asking for a cheaper deal and more tax breaks -- extra spending on Tourism was welcomed by hotel representatives.

Peter Cooper of AS Cooper's -- chairman of the tourist-orientated retail section of the Chamber of Commerce -- admitted: "I'm very disappointed.'' Mr. Cooper added: "I was expecting something -- I was hoping there might be some concessions and certainly duty reductions on tourist-orientated merchandise.'' And he added he would not be holding his breath over promises to boost tourism -- and through that, spending in the shops.

Mr. Cooper said: "Every Government says that, particularly when there is a declining market.'' But he added: "I do appreciate the Tourism Minister is attacking this thing as quickly and efficiently as he can.

"I think all of Bermuda is waiting to see what they have organised in terms of marketing Bermuda through the new advertising agency.

"When we see these plans, we will have a better idea whether it might or might not be effective.'' And he added: "However, we're looking forward to working with the new Government as a retail group in coming to terms with the problems we have.

"I'm trying to arrange a meeting with Mr. Cox very soon to raise the concerns we have with him.'' Flanagan's Bar and Restaurant boss Tommy Gallagher echoed the dissatisfaction of retail chiefs.

Retailers call for cuts in duty Mr. Gallagher -- chairman of the restaurants and clubs division of the Chamber of Commerce -- said more should have been done to boost the Island's nightlife.

He explained: "I would have been hoping that they would have given some consideration to, among other things, the capital costs of refurbishing restaurants.'' Mr. Gallagher said he did not want the special tax breaks for hotel refurbishment -- including in-house restaurants -- axed, but extended to cover stand-alone enterprises.

He added: "The Bermuda experience for tourists doesn't begin and end at hotels. The dining and nightclub experience, as well as retail, is very important.'' And he said he had hoped to see cuts in duty on alcohol to give tourists better value for money.

But Mr. Gallagher said: "We are very supportive of Government on things they are doing in the area of training staff.

And he added: "Many restaurants and nightclubs are not necessarily that profitable -- but we employ a lot of people.'' At the Bank of Bermuda, the Island's biggest, the Budget was described as "favourable and financially responsible'' The bank's executive vice-president Barry Shailer said: "Our initial comments are that we note the increased expenditure, although it appears to be directed towards areas which are generally sensible.

"And it would appear that the increases are being financed out of the growth in the economy and as long as that continues, that should be fine.'' But Mr. Shailer sounded a note of caution over Government banking on future success to pay for today's programmes.

He said: "We just have to bear in mind that our economy can be impacted by forces outside our control -- but so far, things are looking pretty optimistic.'' And past-chairman of the Chamber of Commerce international companies division Tony Goodfellow -- of English-based merchant bank Rothschild's -- said the Budget sent the international sector "positive signals''.

He said: "They said they won't increase the cost of doing business and I'm sure they will do their level best to ensure that.

"It was made quite clear they aren't keen to make Bermuda more expensive for us -- I think that's the best we can expect and hope for.'' Mr. Goodfellow added: "I haven't had a chance to speak to many of our members yet -- but you can't be negative about it because there's nothing to be negative about.'' Mr. Goodfellow said no-one in international business would be "entirely happy'' about promises of tighter controls on the industry.

But he added: "That was in the wind under the previous administration -- and it's internationally required.'' Bermuda Hotel Association chief executive John Harvey said he had not had time to examine the Budget in detail.

He admitted he was disappointed that tax breaks and duty free schemes -- like that for materials for refurbishments -- had not been included.

But he said he was pleased at the $2.5 million boost for tourism, including new TV adverts in North America, marketing and service improvement schemes, more entertainment at the airport and an expanded Visitors' Service Bureaux network.

Mr. Harvey said: "It's very fair and a position we obviously welcome. But the challenge is clearly the cost of doing business in Bermuda.

"It continues to be high and I hope, sooner rather than later, we will sit down with the Minister of Finance, roll our sleeves up and resolve our difficulties.'' HOUSE OF ASSEMBLY HOA