While employment in the licensed trade is at record levels, the industry is beginning to suffer from shortages in the labour market, Dr Yvonne Scott, author of the 1999 survey of licensed premises in Ireland, said yesterday.

"The difficulty for this industry, like others, is that it finds itself having to compete for a relatively limited workforce," Dr Scott said at the publication of the study at the old Jameson distillery in Smithfield, Dublin.

"Even though it has a lot to offer, with geographical dispersal and flexibility of working time, it is finding difficulties in recruiting staff."

She added that the social importance of the licensed trade sector should not be underestimated as not all industries could offer flexible and part-time employment.

At the publication of the survey, the Taoiseach, Mr Ahern, said it showed the importance of the drinks industry to the domestic economy and the important role which the industry plays in the economic as well as in the social life of the State. "That is why we have begun a process of examination and reform of the licensing laws, particularly in relation to the licensing system," he said.

The Taoiseach said the Intoxicating Liquor Act, 2000 would relax barriers to entry to the licensed trade by simplifying and streamlining the manner in which new licences could be acquired.

The courts can now assess whether a particular locality is under-served by a particular form of licensed outlet and to take that consideration into account when granting a certificate for a new licence.

"The effect of this streamlining is likely to be much greater mobility of licences from over-provided areas to new locations where there is market need for such licences," the Taoiseach said.

The recently-established Commission on Liquor Licensing had been asked to make recommendations for a modern, comprehensive code for the entire liquor licensing system, which would include consumer rights and competition policy, the Taoiseach said.

Because of the immediate need to combat excessive price spirals in the non-traded sectors of the economy, the Government has asked the commission to accelerate its consideration of the off-licence situation.

"The first priority of the commission will be to report back to the Government within three months of its first meeting with practical suggestions on improving access to this area of the trade and the nature of the premises that might be licensed," said Mr Ahern.