The move that CAMRA NI stated will affect new pubs, breweries and consumers, has been described as a “wasted opportunity” to update the country’s outdated set-up.
One of the biggest factors is the ‘surrender principle’ that currently forces the handing back of an alcohol licence before a new pub or off-licence can be opened.
Total disregard
CAMRA NI director Ruth Sloan said of the statement made by Minister for Communities Gordon Lyons MLA to the NI Assembly: “This is a huge, wasted opportunity from the communities minister and shows a total disregard for the consumers this administration represents.
“Instead of working to modernise the industry in Northern Ireland he has chosen to side with giant multinational businesses that dominate our pub market and mean there is rarely a choice of decent beer and cider at the bars.”
She explained under the current system alcohol licenses still have to be ‘surrendered’ for up to £100,000 and this “makes it almost impossible” to open a new independent pub.
Stifling innovation
Sloan added it also “closes pubs in areas calling out for third spaces and community hubs as well as stifling innovation and growth by pricing out anything new or interesting”.
She continued: “This decision just adds another nail to the coffin of micropubs, brewery taprooms, wine bars and other specialist venues that are thriving across Great Britain and the rest of Europe yet cannot exist here due to the nature of these outdated laws.
“Instead we can only expand existing floorspaces and end up with huge pubs and groups of pubs, sharing their existing licences, that are often forced by restrictive agreements with big business so that they can only sell the same few drinks everywhere, with no options to provide the wonderful and innovative products being made by beer and cider producers here in Northern Ireland that locals want and tourists are actively travelling here to try.”
Expert conclusions
The University of Stirling has studied the licensing system and has found the following:
• The ‘surrender principle’ (where a licence has to be given up for a new premises to open) has seen pubs closing and licences moving to supermarkets or off-licences
• The current system “is doing little to protect or invigorate the pub sector as a whole” and means “the retail market for beer is dominated by a small number of non-NI based producers who often establish restrictive supply agreements”
• The current licensing system “creates barriers to diversification and innovation” meaning we don’t see good choice of local, independent products on offer, or a good range of venues like micropubs, specialist outlets, brewery taprooms, etc. which are thriving in the rest of Europe
• “The promotion of positive health and social outcomes would be better served by supporting a well-managed on-trade sector [pubs] over a continued increase in the number of off-licences”
• NI is losing pubs at a faster rate than elsewhere.
