The hotels industry says the State Government's backdown on liquor licensing laws is unlikely to improve conditions for workers.

Moves will go ahead to enforce a mandatory closure of pubs and clubs between 4am and 7am but venues can now apply for an exemption, if they can pass strict public interest tests.

The West End Association is disappointed the laws are being watered down while The Hotels Association is skeptical any exemptions will be granted.

Spokesman IAN HORNE says it's not too late for politicians to make a change.

"It's being debated in the upper house at the moment and that will happen for the rest of this week and perhaps go past that... and we continue to put to members of government to the Minister to Opposition to Independants that there is a better way."

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