The Minister for Justice is to propose major liberalisation of the off-licence drinks trade on foot of an official report presented to Government which advocates removal of barriers to competition.
However, Mr O'Donoghue is expected to face significant political opposition to such deregulation, which is opposed by some of his party backbenchers and by the Independent TD and publican Mr Jackie Healy-Rae, on whose vote the Coalition depends.
The Commission on Liquor Licensing, set up by the Minister in November, has recommended an end to the restriction on numbers despite a vigorous campaign against deregulation by off-licence owners.
The full report of the commission may be published as early as today. However, legislation may not follow until late this year and, given the political difficulties, it may not come before the Oireachtas in advance of the next general election.
The commission's report, details of which have been seen by The Irish Times, states that the courts should authorise off-licences where applicants fulfil certain planning and other requirements. However, it also recommends that an unspecified "meaningful fee" should be charged for such a licence.
The Cabinet was told last week that Mr O'Donoghue would shortly bring forward legislation on foot of the report. While it is not known whether the Government will approve all the report's recommendations, sources say that the legislation will be broadly in line with the commission's view.
The Cabinet wants the commission to produce an interim report on deregulation of the pub trade as soon as possible, an issue which likewise arouses strong opposition from the trade, some Fianna Fail backbenchers and Mr Healy-Rae. The key recommendation of the report concerning off-licences is the ending of the rule whereby an applicant must "extinguish" an existing licence before being granted a new one. This provision has ensured the restriction of off-licence numbers to the current 13,000. Some 600-700 of these are dedicated off-licences, the remainder being attached to pubs or supermarkets or lying dormant.
Applicants would have to comply with the existing conditions regarding the suitability of their premises. While licences to sell wine would be more easily obtained, people wishing to sell beer and spirits would have to obtain planning permission.
Tax-clearance certificates and other proofs would also have to be produced, and clear physical access would have to be provided at all times to the Garda and Customs and Excise officers. The report recommends that restrictions should remain on the size and type of premises which can sell alcohol.
The report also calls for a range of measures to combat under-age drinking and to ensure that deregulation of off-licences does not worsen this problem. It suggests the immediate establishment of a strategic task force, run by the Department of Health, to advise the Government and public bodies on best practice in alcohol harm-prevention measures.
It wants measures to encourage as many young people as possible to carry voluntary age cards. The current £5 fee for the processing of age card applications should be abolished, the report says, and application forms should be distributed more widely.
The report proposes that Department of Education schemes should be available for parents on alcohol-related issues. The Department should also introduce alcohol education into the school curriculum. Teachers should be paid for learning the skills for this task in their own time.
In a separate proposal, the commission recommends measures to prevent licence-holders holding on to licences for speculative purposes.