Before the introduction of the single Statewide licence area under the Intoxicating Liquor Act 2000 in July, a Dublin pub licence was worth somewhere between £200,000 and £750,000plus, depending on location. Since geographical restrictions were lifted and it has become possible to transfer licences from rural areas or towns to a major centre of population, a Dublin licence previously worth £500,000 could now have dipped in value to as little as £120,000-£150,000.

The reverse has happened in the case of rural pub licences, which were previously valued at between £70,000 and £80,000 but have shot up to £120,000 to £130,000.

The playing pitch has been levelled in terms of licence value under the reformed licensing laws. Before, licences could only be moved to another premises within a parish or a vicinity of about 463 yards. At the last licensing court on October 19th, approval was granted for a licence transfer from Ballina, in Co Mayo, which is believed to have been bought for around £115,000, to a prime Dublin city centre location.

Kevin Fitzsimons, who operates Fitzsimons Hotel on East Essex Street in Temple Bar, The Wellington Hotel on Wellington Quay and who recently bought The Bird's Nest pub in Glasnevin for around £3 million, and Patrick Whelan, who owns the Mexico to Rome restaurant on East Essex Street, plan to open a licensed premises at 64 Dame Street, a former costume shop with 3,500 sq ft space.

It is now trading as Jasko's restaurant and will be doing so up until Christmas. Patrick Whelan says he and Fitzsimons didn't know what to expect at the October court sitting. "It was touch and go. There was a point where we didn't think we were going to get it," he says.

One market insider, who declines to be named, says this transfer - the only one at the October 19th court - could set "an interesting precedent".

"People were waiting for the first hearing after the new legislation was enacted to see how the judge was going to deal with it and if it was allowed," he says. But while the statewide single licence area provision has had an impact on licence values, there won't be a glut of new pubs coming on the market.

"The easy part is getting the licence, the most difficult part is to find the premises and get planning permission. Three to four years ago the big problem was getting a licence, now the planners are reluctant to give planning for new pubs. They think Dublin city centre in particular is well enough served by them."

"The process will be slow. It is not as if there will be 10 new pubs a year. You have to take into account the planning process and then the time to build or convert a premises. It will be gradual, we might see half a dozen new pubs in the next five years."

Many of the ultra cool new pubs which opened in the city centre over the past year - among them Fireworks, Viva, AKA - obtained planning permission prior to this change in policy. Jasko's restaurant had obtained planning permission for a licensed premises prior to the clampdown on new pubs in the Temple Bar area.

POD nightclub owner John Reynolds has got planning permission to open a restaurant/bar on Fade Street in Dublin 2 on the site of an old sausage making factory. The licence was transferred from a nearby pub. Locals were concerned the premises will become another superpub but have received assurances that this will not be the case. Green Party councillor, Ciaran Cuffe says his worry is that the Fade Street/ Aungier Street/Camden Street area, where he has lived for 10 years, is becoming "an alternative Temple Bar".

"I'd be delighted if John Reynold's new premises turns out to be a good restaurant but there is a need to control the number of large pubs. We shouldn't allow clusters of large pubs, it is bad planning."

The new legislation is designed to bring new pubs to areas which have experienced population explosion but are "underpubbed" - like Tallaght which has a population of over 60,000 and only 11 pubs and Clondalkin which has a population of over 40,000 and only 10 pubs.

"The new legislation will bring new pubs to these places but the big difficulty is finding a site at a sensible cost. It is not cheap to build a pub. You need a good site which could cost £1.75 million to £2 million. To build it could cost £150 per sq ft."

A market expert says that capital values - pubs have been fetching up to £5 million in suburban areas and up to £6 million in the city centre - will not be hugely affected by the single nationwide licence provision, he believes. "I can't see the values of big city centre pubs being hugely affected by this legislation. If there is a drop in values, it will come from within the industry not the new supply of licences."

WHILE pubs are needed in some suburban areas, the problem is that nobody wants them in their own back yard, says John Ryan of Gunne Auctioneers. "Also, for a Dublin pub you need a biggish place, there is still a minimum requirement of square footage and the planners seem to want smaller community pubs."

Tony Morrissey of Morrissey's, believes that there will be a test case that will determine the number of pubs deemed adequate in an area.

"The legislation makes it clear that you have to prove the need for a pub in an area before the licence transfer but it is difficult to determine adequacy."

The only areas where a significant number of new pubs will emerge in the city centre, he believes, are Sir John Rogerson's Quay and the Custom House docks, which were formerly largely derelict.

Mr Tom Morgan BL, who acted for Berry Brothers and Rudd in their recent successful District Court hearing to transfer a rural licence to an off-licence in Dublin's city centre, says that while the first transfer of a pub licence was granted in October, he, "would be surprised if five more are granted before Christmas."

"It will take time to measure the impact. Many of the cases on the licensing list of the Circuit Court for the next number of months will be overhangs from the old law. These cases under the old law need to be washed out before we can gauge the reaction to the new legislation. It's just a matter of wait and see."

The District Court deals with the transfer of licences to off-licences. Berry Brothers and Rudd (Ireland Ltd) bought its licence in Ballyshannon, Co Donegal, and since getting court approval to transfer it to its off-licence off Dublin's Grafton Street, it has been able to sell spirits.