"bar entrance'' sign is removed from the Burnaby Street property.

But the Liquor Licensing Authority imposed the condition at a hearing on Friday only after two of its members had expressed concern about the establishment and were later scolded by Authority acting chairman the Wor.

John Judge for visiting the premises on their own and acting on "hearsay''.

While there were no objections to the liquor licence application from the public and Police, Authority member Mrs. Catherine Trerice said she was concerned that Shutters was "continually advertised in the papers as a public bar and restaurant''.

She pointed out that the new restaurant only had an occasional liquor licence for its Masterworks Foundation display.

"We need to see the premises to satisfy ourselves that it is not a bar first, then a restaurant,'' Mrs. Trerice said, adding that the bar licence was for 10 a.m to 10 p.m. and the restaurant licence for 11 a.m. to 1 a.m.

Authority member Mr. John Siggins said he attended Shutters on Thursday night and noticed there was a sign stating bar entrance and another for the restaurant entrance.

And he said: "I saw no art exhibition, nor was there any suggestion that one was present. So where is the art exhibition?'' Shutters owner Mr. John Roach said there is a sign that says "Masterworks Foundation'' at the entrance and there are art exhibits on the wall.

He said due to the design of the building there was a dining room at the entrance, so he put a bar entrance sign at the other side of the restaurant to cut down on traffic passing through the dining area.

Shutters' lawyer Sen. Wendell Hollis said this was no different from the Lobster Pot and "many restaurants where people sit at the bar while waiting for a table''.

Sen. Hollis also pointed out that Mr. Roach extended invitations to the Authority to visit the business and would welcome this because the business had been operating without a liquor licence for the last two weeks.

"In these times of recession, one day that a restaurant operates without a licence is a knife in his back,'' Sen. Hollis said.

"I strongly urge that the application be granted this morning. My clients were only applying for a restaurant licence and that's all they want to do -- operate as a restaurant.'' Mr. Roach said he had done no advertising for Shutters. And Sen. Hollis indicated that the advertisement could have been made in error.

He also pointed out that Mr. Roach, who runs Bombay Bicycle Club and Chopsticks, was no stranger to the Authority.

"There are probably very few people who are more aware than Mr. Roach (in operating a restaurant business),'' he said, adding that Mr. Roach intended to run Shutters like his other restaurants.

Authority acting chairman the Wor. John Judge then scolded Authority members.

Calling reports about Shutters' advertising in newspapers "hearsay'', he said he was not happy that Authority members were mentioning advertisements which were not before him.

And he said: "I'm concerned about members visiting the premises on their own.

The Authority is a body, not a series of individuals and I would not like to see that (individual members visiting applicants' premises) again.'' After a ten-minute adjournment to discuss the matter in private, Mr. Judge said: "Subject to the condition that the sign saying "bar entrance'' is removed, the licence will be issued.'' Sen. Hollis said this would not be a problem for Shutters.