Liquor Licensing Policy & Legislative Proposals:  Assembly Statement

I am grateful to you, Mr. Speaker, for this opportunity to present my plans for changes to the law on liquor licensing and registered clubs.  I have spoken to the Assembly in the past on elements of this topic and my officials have supplied members of the Social Development Committee with information. Today I welcome the chance to present the issues in the round.  This is a complex, emotive area and Members will appreciate that it has taken some time and much hard work to get to this point.  I hope you and other stakeholders will, on reflection, agree that the effort has been well worth making.

I would like to outline for you this afternoon my immediate reform proposals including, with Executive agreement, urgent legislation to strengthen enforcement measures and ease the bureaucratic burden on clubs. I would also like to signal my longer-term intentions.  I will then be happy to take your questions.

But first, I believe it would be helpful to briefly sketch in some background.  My responsibility for liquor licensing derives from my remit to improve the physical, economic, community and social environment of neighbourhoods, towns and cities in Northern Ireland, with a particular emphasis on tackling disadvantage.   Key questions for me are therefore - how can our society’s handling of alcohol contribute positively to achieving our social, economic and regeneration objectives?  More specifically, how can liquor licensing law help us effectively manage alcohol?

Northern Ireland law on liquor licensing and clubs has remained largely unchanged for over 12 years, despite major changes in expectations, in our environment and in social and economic circumstances during that time.  The law needed to be examined - not least in response to pressure from the licensed trade - to see if and how it should be reformed and updated to reflect developments in that period, good and bad.  

In the category of unwelcome developments I firmly place the rising level of alcohol abuse in our society and its effects in terms of ill-health, disorder, crime, domestic violence and other problems.  These problems affect all of us. one way or another, and all of us must face up to our common duty to develop adequate responses.  Licensing law alone cannot solve the problems but, in conjunction with other initiatives by the public, private & community sectors, it can help make a difference.

I was fortunate when I began my review to have the benefit of the work done by my predecessor, David Hanson MP, with his Ministerial colleagues and officials.  This provided me with a comprehensive information base upon which to build and proceed.   My review was carried out against the backdrop of the Review of Public Administration and I have tried to ensure that my proposals are future-friendly and can align comfortably with the objectives & structures of the new dispensation.

Turning now to the outcomes of my review, I would like to make clear that, in putting together proposals, my overall aim has been to achieve a balanced package of reforms - one which is tailored to Northern Ireland’s needs and circumstances and which fairly addresses the aims and concerns of the varied range of stakeholders in this area, who have competing agendas and sometimes conflicting points of view. These stakeholders include regeneration, health & community safety interests, the police, district councils and the tourism, hospitality, licensed & retail sectors.  I would propose to introduce reforms in two stages.

I believe that stricter enforcement measures are urgently needed to address growing problems of public health, disorder and underage drinking in Northern Ireland.  I would therefore like to bring forward in the first stage of my reforms a short Bill, introducing new enforcement provisions which earlier consultations showed had widespread public support.  I am convinced the measures are even more relevant now.   

My Bill would amend the Licensing and Registration of Clubs (Northern Ireland) Orders 1996 to make provision, first, for new closure powers to allow the police and courts to immediately shut down, for up to 24 hours initially, individual licensed or club premises, or premises in a particular area, where there is actual or likely disorder.  Offences of failing to comply with the new closure orders would also be created.

Secondly, I would propose to introduce a system of penalty points, to be levied by courts on premises which break the law.  The courts would have some discretion about imposing these but would be obliged to endorse points on a licence or certificate in respect of serious offences, such as underage sales.  Premises accumulating 10 points within any 3-year period would have their licence or certificate suspended, for a minimum of 1 week and a maximum of 3 months.  

I recognize that we face serious problems linked to alcohol abuse by our young people so I intend to introduce a statutory proof-of-age scheme which would specify, for the first time, acceptable proof-of-age documents for the purposes of licensing and registered clubs law.  The documents would be: a passport, a photo card driving licence, a Northern Ireland Electoral Card and any PASS-accredited photo identity card.  Power would be provided to make regulations specifying other age cards if needed.  Premises would be obliged to display specified signage describing the new scheme and a new offence of failing to display the signage would be created. I am confident the new arrangements would help protect law-abiding licensees and would complement the new PSNI test purchasing power, due to come into effect in 2009.

Finally, the new Bill would introduce more appropriate accounting requirements for registered clubs.  PSNI has acknowledged that the financial mismanagement which existed in some clubs in past years is no longer in evidence and has recommended a modernised approach, in recognition of the clubs’ work in recent years to improve their accounting practices.  The new provisions would take account of the differing circumstances and requirements for small, medium & large clubs and go some way to easing the bureaucratic burden on them.

I mentioned that these issues have already been consulted upon.  In fact, they have been consulted upon twice.  In November 2005, David Hanson sought views on a package of policy proposals which included closure powers, penalty points, more flexible accounting for clubs and a voluntary, rather than mandatory, proof-of-age scheme.  In December 2006 he consulted on a draft Order which would have introduced closure powers, penalty points and amended accounting provisions.  In the event, the Order was not enacted due to restoration of the Assembly.  

Both the policy and legislative consultations showed overwhelming support for closure powers & penalty points and widespread support, from PSNI, health interests, licensees and others, for a mandatory proof-of-age scheme.  The consultations showed opinion evenly split on the clubs’ accounting proposals.

In light of the results from these consultations I do not believe further consultation on the provisions of my draft Bill would be necessary.  Indeed, I believe it could unnecessarily delay important measures which would provide greater safeguards for the community.  

Given current calls for more effective enforcement of the law, I believe the Bill which I am proposing is likely to be broadly welcomed.  The closure powers would bring us into line with Britain and the proof-of-age provisions would be similar to those in Scotland and the South.  The penalty points and clubs’ accounts provisions would be unique to Northern Ireland.  With the Executive’s agreement I would hope to see the Bill go forward in the present legislative session and come before this Assembly in early summer 2009.

The second stage of my planned reforms, involving more fundamental changes, would take place once the Review of Public Administration is completed and a new system of local government is in place. My intention at that stage would be to simplify and harmonize controls on the sale and supply of alcohol.  

I would aim to do this, first, by transferring responsibility for liquor licensing and clubs’ registration from the courts to the newly-formed district councils. I am confident that this would increase the efficiency, effectiveness and accountability of the system and make it more responsive and accessible to local residents, planners & decision makers and those, including the licensed, hospitality, retail & other business sectors, on which local economies rely.   

To underpin the new regime I would introduce at the same time six new, statutory licensing objectives. The objectives I propose are:- promotion of public health; promotion of public safety; prevention of crime and disorder; prevention of public nuisance; protection of children from harm and fair treatment of all stakeholders.  These would form the basis for consistent central and local government working on policy, legislation and procedures.   

I would also propose, as a further streamlining measure, to abolish the current 12 licence categories in favour of a dual system of personal & premises licences.

Under the proposed new system each council would be responsible for drawing up a Statement of Licensing Policy for its area.  It would also be responsible for decisions on the grant, review and renewal of premises licences and club certificates and the conditions to be imposed on them.  In carrying out their remit, councils would be required to consult residents, police, licensees, retailers & other businesses in their area as well as those responsible for environmental health, planning and health & safety issues.  As a group, councils would be supported in their work by central guidance produced by my department to help promote clarity and consistency.  

The changes I have in mind for Stage 2 formed part of the November 2005 policy consultation carried out by David Hanson.  As a rough indication, 60% of respondents were opposed to transferring responsibility from courts to councils, 32% were in favour and 8% were neutral.  The vast majority of consultees favoured introducing licensing objectives.  On abolishing licence categories there was broadly a fifty/fifty split among the licensed trade, political parties, councils and health groups, with a good proportion wanting to keep pub and off-licence categories but abolish or simplify the rest.

Those, Mr Speaker, are my proposals for legislative reform in the short and longer term.  Before taking Members’ questions I would just like to touch briefly on two other issues - surrender and the Review of Public Administration.

My Department provided the Social Development Committee last December with a paper summarising the results of a business impact assessment which I commissioned into the financial implications of abolishing the surrender provision.  This is the provision which currently requires a licence for a pub or off-licence to be handed into court – surrendered, in other words – before a licence for a new business of either type can be granted.  The practice has, over time, reduced the number of pubs and off-licences operating in Northern Ireland and it currently prevents additional ones starting up.  The impact assessment debunked some of the claims made during the debate which took place around my predecessor’s proposal to abolish surrender.  It also demonstrated that it was not possible to obtain robust evidence on which to base firm conclusions regarding the financial effect, on current licensees, potential licence applicants or other stakeholders, of retaining the surrender provision in its current form or of abolishing it en masse at some future date.  I would like Members to note that in the absence of a robust evidence-base I have decided to take no action in relation to surrender at the present time.  

The transfer of responsibility for the licensing regime from courts to district councils which I propose does not fall within the ambit of the Review of Public Administration since it does not involve transferring functions from my department.  Nevertheless, I would like my reform proposals to be capable of being implemented in a way which respects the arrangements and structures planned for local government post 2011.  Since the devil is practically always in the detail, I will be open to views on how best we might prepare to deliver the changes in harmony with the councils and the other stakeholders and to monitor and review them over time.

Finally, I would ask Members to note that I am committed to ensuring the law in this area complements my Departmental social & regeneration objectives and that it is durable, far-sighted and fit-for-purpose.

I am committed to working with Executive colleagues, to ensure that the law supports the wider government agenda.  In the immediate future I look forward to working closely with Minister McGimpsey and the Ministerial Sub-Group on Children & Young People to ensure that liquor licensing legislation contributes positively to combating the harm caused to our young people by alcohol abuse.  

In that context, I am committed to seeing legislation put in place as swiftly as possible to introduce strong enforcement measures to more effectively promote, but if necessary compel, compliance with the law, for the benefit of responsible retailers, young people and ultimately our community at large.   

I therefore made a formal Bid to have my Bill included in the current legislative session and then submitted to the Executive a Policy Memorandum seeking agreement to my proposals. That paper was to have been considered at the  Executive meetin, scheduled for 30 October, which did not place.   

I would hope that, current circumstances notwithstanding, it may be possible to see those much-needed measures introduced without  delay.

Thank you for your attention.  I am happy to take questions and I look forward to receiving your support.