Scottish licensing regime to impact drink pricing?

Scotland's new Licensing Act - already set to end happy hours - could ban discounted drink prices.

Specialist lawyers argue that in future key elements of the Act could allow licensing boards to brand very low prices "irresponsible" - with serious

licence implications.

Independent nightclub operators including Lynnet Leisure have sparked the new legal debate with their claims that responsible venues are compromised by a minority who woo custom with regular "giveaway" prices.

Lawyer John Loudon, of Edinburgh-based legal firm Lindsays, said it was likely a court challenge would decide if boards could apply licence sanctions for "irresponsible" pricing.

He told thepublican.com: : "We've always argued pricing has to be an issue, and in that it's down to what mechanism you could use - a board might argue a giveaway drink price was irresponsible. At the same time I think the trade itself will settle around what most would consider reasonable prices."

Glasgow licensing board convener Gordon Macdiarmid has already introduced a radical local policy effectively banning many promotions within city limits, for example happy hours, but has consistently ruled out minimum pricing because of its anti-competition implications.

He told thepublican.com:: "When the Act becomes law (in 2009) I think boards will want to deal with unreasonably low prices among a small minority by saying they're irresponsible in terms which would meet the legislation."

A spokeswoman for the Scottish Executive added: "We cannot speculate on whether the Licensing Act could be used in this way. Decisions (on taxation) are made on a UK wide basis by the Treasury, but we want to be involved in this debate. We are also keen to discuss voluntary moves by retailers."

Paul Smith, executive director of clubs organisation the BEDA said there was a need to curb irresponsible traders - but any new moves must also address off trade deep discounted drinks offers, often consumed before a night out.