Double whammy

News

Noella Pio Kivlehan

03 June 2006

Trade threats The Province’s publicans face both the challenge of a smoking ban and changes to licensing. Noella Pio Kivlehan reports

If it’s not one thing, it’s another. February’s parliamentary ruling to introduce a smoking ban has rattled Northern Ireland’s publicans to the extent that they are considering every outside space as an area where drinkers can light up without the risk of hypothermia.

Then there is the threat of a change in licensing laws next month that could see the value of licences, averaging £135,000, swept away overnight.

First the smoking ban. The Province’s 1,600 publicans have watched an estimated 7,600 catering industry jobs disappear since the Republic of Ireland went smoke free in 2004. They are understandably nervous about the impact the smoking ban will have when brought in next April.

Nicola Carruthers, chief executive of the Federation of the Retail Licensed Trade, says she is already telling members to look at every feasible outside area.

She adds: “We need guidance from the planners to let us know what is enclosed, or whether we even need planning to put a bin outside the pub for cigarette stubs.”

Regardless of how outside areas are designated, not all agents think the ban will hit hard. Mark Adams, associate director with Whelan Property Consultants, believes: “The hard drinking culture of the past is going, and pubs are focusing on food,” he says.

However, Adams says what will hit Northern Ireland’s licensed trade the most are proposed changes to licensing.

Next month, Northern Ireland’s Department of Social Development is set to decide on whether the province’s old system – where anyone wishing to open a pub or off-licence has to purchase an existing licence – should be replaced with a system similar to that in England and Scotland, where licences are granted upon application to local councils. The number of pub and off-sales licences in Northern Ireland is limited to 1,938.

If the DSD makes these changes, agents say they will have far-reaching effects.

“It will affect up to 80% of Northern Ireland’s pubs, especially those where a reasonable amount of the value is tied up in liquor. If people no longer have to buy licenses, those businesses will be greatly reduced in value,” says John Martin, a director with Osborne King.

Meanwhile, prospective buyers are holding back, hoping to acquire licences for nothing.

If the decision goes against the trade, Carruthers says, Northern Ireland’s licensees will keep fighting.

License changes

● June 2005 Draft proposals are announced to, for example, remove the cap on the number of licensed premises and change responsibility for issuing licences from the courts to local councils.

● March 2006 A public referendum is held

● July/August 2006 Changes to be finalised. If they are agreed, implementation will start mid 2007 and be completed by 2009.

Trade threats The Province’s publicans face both the challenge of a smoking ban and changes to licensing. Noella Pio Kivlehan reports If it’s not one thing, it’s another. February’s parliamentary ruling to introduce a smoking ban has rattled Northern Ireland’s publicans to the extent that they are considering every outside space as an area where drinkers can light up without the risk of hypothermia. Then there is the threat of a change in licensing laws next month that could see the value of licences, averaging £135,000, swept away overnight. First the smoking ban. The Province’s 1,600 publicans have watched an estimated 7,600 catering industry jobs disappear since the Republic of Ireland went smoke free in 2004. They are understandably nervous about the impact the smoking ban will have when brought in next April. Nicola Carruthers, chief executive of the Federation of the Retail Licensed Trade, says she is already telling members to look at every feasible outside area. She adds: “We need guidance from the planners to let us know what is enclosed, or whether we even need planning to put a bin outside the pub for cigarette stubs.” Regardless of how outside areas are designated, not all agents think the ban will hit hard. Mark Adams, associate director with Whelan Property Consultants, believes: “The hard drinking culture of the past is going, and pubs are focusing on food,” he says. However, Adams says what will hit Northern Ireland’s licensed trade the most are proposed changes to licensing. Next month, Northern Ireland’s Department of Social Development is set to decide on whether the province’s old system – where anyone wishing to open a pub or off-licence has to purchase an existing licence – should be replaced with a system similar to that in England and Scotland, where licences are granted upon application to local councils. The number of pub and off-sales licences in Northern Ireland is limited to 1,938. If the DSD makes these changes, agents say they will have far-reaching effects. “It will affect up to 80% of Northern Ireland’s pubs, especially those where a reasonable amount of the value is tied up in liquor. If people no longer have to buy licenses, those businesses will be greatly reduced in value,” says John Martin, a director with Osborne King. Meanwhile, prospective buyers are holding back, hoping to acquire licences for nothing. If the decision goes against the trade, Carruthers says, Northern Ireland’s licensees will keep fighting. License changes ● June 2005 Draft proposals are announced to, for example, remove the cap on the number of licensed premises and change responsibility for issuing licences from the courts to local councils. ● March 2006 A public referendum is held ● July/August 2006 Changes to be finalised. If they are agreed, implementation will start mid 2007 and be completed by 2009.