The backdown follows a furore over demands that Garema Place retailers remove display racks on unleased land, threatening a time-honoured practice.

Chief Minister Jon Stanhope said the Department of Territory and Municipal Services chief executive Gary Byles had written to retailers in Civic on Friday saying the current practice would be accepted until the laws were reviewed.

Mr Stanhope said the letter had been sent to all Garema Place retailers and no further action would be taken.

''I think out of this particular issue our experience is, at least on my behalf, an absolute acceptance that we need a different model,'' Mr Stanhope said.

He had previously said the Government was prepared to enforce the letter of the law.

For more, pick up a copy of today's Canberra Times