Pubs winning battle over Bill on licences

In spite of public pressure, official inquiries and representations from the restaurant and services sector, publicans are still…

In spite of public pressure, official inquiries and representations from the restaurant and services sector, publicans are still dictating the broad thrust of drinks licensing policy. Faced by one of the most powerful political lobby groups, the Minister for Justice, Mr John O'Donoghue, is reluctant to grasp the nettle of deregulation.

So, when Mr O'Donoghue publishes his long-delayed Intoxicating Liquor Bill later this spring, it will disappoint many. He will create some new licences by removing out-of-date restrictions on entry to the licensed trade and modify the rules for rural licences. But the big issue of freely licensing restaurants, theatres and places of public entertainment, along with hostels, guest-houses and interpretative centres, as dispensers of alcohol will be referred onwards for further consideration to a Commission on Licensing. The only gesture towards limited deregulation is a request to the commission "to review the scope for a system of additional licences".

Perhaps the public should feel grateful for such concessions, given the strength of the publicans' lobby. At least a quantity of new licences will be made available and some antiquated restrictions on competition will go when the promised Bill becomes law.

Specifically, it will be easier to establish pubs in large new housing estates and the rules in rural areas will be amended. But, with publicans likely to secure heavy representation on the new commission, the possibility of early radical reform to mirror the lifestyle changes of the population seems remote.

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Property developers will be particularly interested in those licensing provisions that deal with expanding urban areas. As things stand, a new licensed premises may not open within a mile of existing competition. If it is to do so, however, an existing urban pub licence must be bought and extinguished and the new owner must prove to the courts there has been a significant local population increase. In rural areas, two old licences must be extinguished to secure a new one for a different premises.

Under Mr O'Donoghue's proposed Bill, a new pub licence may be issued anywhere in the State in substitution for one existing licence, where the Circuit Court is satisfied about the fitness of the applicant, the fitness or convenience of the new licensed premises, and having regard to the number of licensed premises already in the vicinity. Action will also be taken to allow for the conversion of existing six-day and early-closing licenses to ordinary seven-day licences. But special restrictions will be placed on their disposal.

It is all very minimalist and reflects a concern to protect the value of existing pub licences along with a determination by their owners to retain maximum control over the sale of alcohol. Pub licences, no more than taxi licences, are now very valuable commodities, simply because of the artificial shortages created by politicians and successive governments. Twelve years ago, a pub licence could be expected to change hands for about £5,000. By 1990, the sale value had crept up to £20,000, and now it is estimated to be between £80,000 to £100,000. And the State draws no benefit from this inflationary/monopoly situation.

The Minister will introduce changes dealing with pub opening hours in the Bill in response to pressure from the Dublin-based Licensed Vintners Association and from the rural-based Vintners' Federation of Ireland. Normal opening hours on Monday, Tuesdays and Wednesdays will, in future, be from 10.30 a.m. to 11.30 p.m., plus 30 minutes drinking up time, all year round. Opening hours on Thursdays, Fridays and Saturdays will be from 10.30 a.m. to 12.30 p.m., all year round, with 30 minutes drinking up time. The requirement on pubs to close from 2 p.m. to 4 p.m. on Sundays will be abolished.

THE new Bill will also remove restrictions on the granting of special exemptions to hotels and nightclubs after midnight on Saturday and after normal closing times on a Sunday. A restriction on special exemptions beyond 1 a.m. on Monday morning will remain, except where it coincides with New Year's Eve. The requirement to serve a meal as part of the special exemption conditions will also be dropped.

When it comes to political power and influence, publicans are in a class of their own. Dublin taximen may throw political shapes and cause traffic chaos when a threat emerges to break up their monopoly but publicans are more numerous and influential. They have forced legislation to be dropped or revised when their interests were threatened. It happened last year when Mr O'Donoghue made the mistake of not securing the agreement of rural publicans before deciding to allow rural nightclubs and hotels extend their Saturday late opening hours through special exemptions. They were furious and demanded changes in pub opening hours in order to rebalance the benefits. When the Minister didn't bow to their demands, they lobbied the opposition parties and independent TDs to oppose the measure. The upshot of it all was that the Minister had to withdraw his Bill.

With it went the Government's plan to have all-night pub opening on New Year's Eve. Perhaps it was better that the legislation bit the dust. Given the shuttered nature of most licensed premises in Dublin when the millennium came around, the Government's original legislation would have looked very foolish.

For years now, there has been a great deal of political talk about reforming the system. An all-party Dail committee examined the issues and made comprehensive proposals for change two years ago. But when the Minister for Justice finally released details of his legislative proposals last October, it was with extreme caution.

That was over three months ago and the Commission on Licensing has yet to be appointed. There have, however, been discussions with various interest groups about the terms of reference for the commission and the levels of representation they would be granted on it. A spokesman for the Department of Justice said it was hoped to agree the final details and set up the commission by next month.

Such target dates are invariably missed. The Intoxicating Liquor Bill was originally promised for last autumn. But it has still to see the light of day and, when it does appear, it will be anything but comprehensive.

Still, it is hard to blame Mr O'Donoghue for his caution after he was given a bloody nose by the Vintners' Federation of Ireland, last June. There is a long and rough road yet to travel but it must inevitably lead to the extensive deregulation of the drinks trade.

Arguing against deregulation last year, Mr Richard Donovan, an economic consultant employed by the Vintners' Federation of Ireland, said such a step would infringe publicans' property rights; would encourage hit-and-run entry into the trade, where people would be more likely to engage in socially irresponsible behaviour - and it could even drive up the price of alcohol.

Much the same arguments were used by Dublin taximen, but public demand is forcing change. It's only a matter of time before the same thing happens in the drinks trade.