they will benefit or lose out from complex payroll tax changes announced in the budget.

Finance Minister Eugene Cox said the adjustments would offer $65,000 in relief to restaurants, bars and nightclubs, $420,000 to hotels, and $415,000 to the retail sector.

The changes involve relief for employers, but also an increase in payroll tax of a half percent.

Tommy Gallagher, the chairman of the bars, restaurants and nightclub division of the Chamber of Commerce, said yesterday: "I'm a bit confused.

"On the one hand, payroll tax is going up by a half percent but they are offering relief.'' Mr. Gallagher, the manager of Flanagan's bar and restuarant on Front Street, welcomed Government's decision not to increase alcohol duties but criticised it for not extending tax breaks offered to hotels and resturants to the Island's bars and nightclubs.

The Chamber lobbied Mr. Cox before the Budget to ask that capital refurbishment exemptions given to hotels should also include bars and nightclubs, but there was no mention of this yes terday.

Hotels and restaurants will continue to have a preferential payroll tax rate of 9.75 percent, but this will be slashed to 7.75 percent during the quiet winter months of December, January and February. Bars and nightclubs, however, have been excluded from this tax break.

Mr. Gallagher said: "I am happy to see that Government is aware of the impact on restaurants, bars and nightclubs (of increasing alcohol duty) and is taking that into consideration.

"But I still think there should have been some consideration given to giving us the same capital cost relief as hotels. Between us we spend millions on refurbishment year in, year out.

"Also, there should have been a more direct tax relief for the training and development of local people.

"We are also not getting relief over winter time of two percent which hotels are getting on payroll tax. Why are we any different?''