Legal row erupts over grandfather rights
by Tony Halstead
Thousands of pub businesses could lose cherished "grandfather rights" in a legal row which threatens to cause major disruption to the transition period of the new Licensing Act.
The Department for Culture Media & Sport may insist that all licences amended at transfersessions made after the start of transition on 7 February will be classed as new licences.
It would mean pubs automatically losing the historical trading rights and conditions they have traditionally enjoyed and give licensing authorities new powers to refuse or impose conditions on licences at will.
But leading licensing lawyers claim the DCMS has misinterpreted the wording of the Licensing Act and have threatened to apply for a judicial review to challenge the government line.
Police are backing the DCMS view and look certain to raise objections when existing licensees apply for conversion using a transferred licence.
Morning Advertiser legal editor Peter Coulson said lawyers across the country had already decided to withdraw hundreds of transfer applications at the next sessions until the matter is resolved.
"The DCMS is saying that all transfers made after 7 February will be classed as new licences and grandfather rights will be null and void," he said.
"There will be thousands of transfers made over the coming months, but if all these are going to be treated as new licences it will be a disaster for the trade.
"The DCMS has refused to be persuaded by the arguments presented by a bank of top lawyers around the country. It has reverted to the time-honoured cliché that it is up to the courts to decide."
The row threatens to cause major disruption to licensing transition which is already in deep trouble after a disastrous first month which has seen only a trickle of conversion applications submitted to local councils.
If the DCMS gets its way, licensees applying for a transfer without conversion rights would need to make a completely new licence application. This would allow objections of all types, possible curtailment of hours and scope of the licence and numerous other conditions imposed.
The lawyers' line is being supported by the British Beer & Pub Association which claimed it was "never the intention that this should happen".
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