Rules governing the establishment of small bars in Sydney will be reviewed by the NSW government, with the Hospitality Minister, George Souris, suggesting they are contributing to problems in areas such as Kings Cross.

Laws enacted by the State Parliament in 2008 make it cheaper and quicker to set up small bars by slashing red tape and application fees.

Outspoken ... George Souris. Credit:Sean Cunningham

The push was led by the Sydney MP and lord mayor, Clover Moore, but was strongly opposed by the hotels lobby, which argued they would erode responsible service of alcohol standards.

In an interview about the death of teenager Thomas Kelly and the government's response to violence in Kings Cross, Mr Souris said small bars had "a lower level of surveillance, a lower level of supervision, a lower level of compliance. For some reason the bigger venues that also have gambling associated with them are better policed, better supervised than those smaller venues".