Industry leaders said it was “absurd” that under the Licensing (Scotland) Act 2005, introduced almost a year ago, some retailers were being charged up to £1500 to change the space allocated to alcohol, meaning they could be paying more for the privilege of selling less drink.
It is one example of changes not counted as “minor variations” and it is up to town halls to set their own fees, which can range from £70 to £1333. Trade lobbyists are calling for the Government to set a blanket fee of £20 for such changes to cut the impact on small businesses.
Graeme Knowles, president of the Scottish Grocers’ Federation, added: “This legislation was about streamlining the processes involved in licensing but instead an entire industry has grown up around it. There are 40-plus charging regimes for changing aspects of our members’ licences and some of the examples where they need to change details are frankly madness.”
The extra red tape is thought to be adding to pressure on pubs already struggling in the wake of the economic crisis and smoking ban. Three pubs are estimated to close every week in Scotland.
Grocery stores are also affected and small retailers are facing costs of up to £1500 and a process lasting up to six months just to cut alcohol display areas by a few square metres. The application fee could exceed £1000. A layout plan required by law could add another £500.
Local authority licensing boards are then required to give notice to neighbours, community councils, the local council, police and the fire authority.
Notices must also be displayed at the premises to inform the public, while the application and plans have to be examined by the council’s building standards department and police. The whole process could take six months, with unquantifiable costs to the public purse.
The Government has said it is working to clarify what could fall into the scope of “minor changes”. It has insisted that the variations process was essential to prevent what it calls “licensing by stealth”.
But Gavin Partington, spokesman for the Wine and Spirit Trade Association, which speaks for many of the main supermarket chains on licensing, said: “This only goes to show that rather than address problem drinkers the changes in the Licensing Act have added a fresh tier of bureaucracy and additional costs.
“It’s absurd that responsible businesses should face this level of expense and hassle to actually reduce the space allocated to alcohol display.”
Leading licensing lawyer Jack Cummins said: “While politicians deliberate as to the best method of tackling alcohol misuse and creating a seismic shift in the country’s drinking culture, they might just take a moment out to sort out the nonsense that only serves to penalise responsible operators, many of whom struggle to keep viable small businesses in an exceedingly difficult economic climate.”
Glasgow Liberal Democrat MSP Robert Brown said that where there were “clear deficiencies and unnecessary restrictions” in the licensing regime the Government had a duty to address them.
A Scottish Government spokesman said work to clarify and extend changes which can be dealt with through minor variations is being done and will be finished by the end of the year.
He added: “The variation process is important as it ensures the public, licensing boards and the police are aware of changes … and can prevent ‘licensing by stealth’, a problem under the previous licensing regime where a hotel with a small bar effectively became a superpub and a convenience store a glorified off-sale.”
Blitz on Scotland’s booze culture
The Licensing (Scotland) Act 2005 came into force on September 1, 2009. It was the first major overhaul of licensing legislation in 30 years.
The 2005 Act was designed to help address problems created by alcohol misuse in Scotland.
Some of the biggest changes brought in include an end to irresponsible drinks promotions in pubs and clubs and a ban on cross-marketing displays, such as stocking crates of lager beside garden furniture in supermarkets.
Pub customers are entitled to free tap water, and soft drinks have to be reasonably priced. Off-sales before 10am were banned.
The new legislation said anyone can object to an application to the licensing board, or support one. This was a significant change -- before, only people owning or occupying premises nearby could comment.
Premises selling alcohol need a licence and the designated manager must also have a personal licence. The deadline for personal licences had to be extended as venues faced long delays in the application process.
