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Concern at licensing cost rises | Concern at licensing cost rises |
(about 1 hour later) | |
Pub industry representatives have raised concern about a rise in licensing fees, claiming they would force the closure of smaller outlets. | Pub industry representatives have raised concern about a rise in licensing fees, claiming they would force the closure of smaller outlets. |
The move will see some premises facing a £2,000 bill for their licence. | The move will see some premises facing a £2,000 bill for their licence. |
Justice Secretary Kenny MacAskill said the move would put communities before profit margins and fairly link the charges to the size of businesses. | Justice Secretary Kenny MacAskill said the move would put communities before profit margins and fairly link the charges to the size of businesses. |
Holyrood's justice committee agreed not to block the new measures, which will come into force in autumn 2009. | Holyrood's justice committee agreed not to block the new measures, which will come into force in autumn 2009. |
At present, all pubs pay an initial fee of £172 for a three-year licence, with further fees for renewals. | At present, all pubs pay an initial fee of £172 for a three-year licence, with further fees for renewals. |
Clearly the licensed trade want that subsidised something-for-nothing system to continue Kenny MacAskillJustice Secretary | Clearly the licensed trade want that subsidised something-for-nothing system to continue Kenny MacAskillJustice Secretary |
Under the new regime, premises with a rateable value above £140,000 would pay the maximum charge of £2,000. | Under the new regime, premises with a rateable value above £140,000 would pay the maximum charge of £2,000. |
Strongly defending the measures at the committee, Mr MacAskill said they would dispense with the "outdated and dogmatic" mindset that selling alcohol was a right. | Strongly defending the measures at the committee, Mr MacAskill said they would dispense with the "outdated and dogmatic" mindset that selling alcohol was a right. |
"It is not," he added. "It is a privilege." | "It is not," he added. "It is a privilege." |
The licensed trade estimated that costs to the sector would rise from £5m a year to £20m. | The licensed trade estimated that costs to the sector would rise from £5m a year to £20m. |
David Daniel of Punch Taverns, which owns 500 premises in Scotland, said the increases did not reflect the cost of administration of the licence system. | David Daniel of Punch Taverns, which owns 500 premises in Scotland, said the increases did not reflect the cost of administration of the licence system. |
Paul Waterston of the Scottish Licensed Trade Association said pubs were already under pressure because of the smoking ban and the use of alcohol sales by supermarkets as loss-leaders. | Paul Waterston of the Scottish Licensed Trade Association said pubs were already under pressure because of the smoking ban and the use of alcohol sales by supermarkets as loss-leaders. |
'Subsidised' system | 'Subsidised' system |
"The last thing licence holders need is these fees coming in," he said. | "The last thing licence holders need is these fees coming in," he said. |
Patrick Browne, of the Scottish Beer and Pub Association, added: "I think there will be marginal businesses that will no longer continue to trade after September 2009, and I think increased costs will be passed back to the customer." | Patrick Browne, of the Scottish Beer and Pub Association, added: "I think there will be marginal businesses that will no longer continue to trade after September 2009, and I think increased costs will be passed back to the customer." |
The justice committee's convener, Tory MSP Bill Aitken, decided not to press a motion to block the increases, amid concern that the increases had been brought forward at the last minute. | The justice committee's convener, Tory MSP Bill Aitken, decided not to press a motion to block the increases, amid concern that the increases had been brought forward at the last minute. |
Mr MacAskill also said the new fees would end the current taxpayer-subsidised licensing system, under which 63% of running costs were met from fees. | Mr MacAskill also said the new fees would end the current taxpayer-subsidised licensing system, under which 63% of running costs were met from fees. |
He added: "Clearly the licensed trade want that subsidised something-for-nothing system to continue. But the government does not and I would suggest the public do not want it either." | He added: "Clearly the licensed trade want that subsidised something-for-nothing system to continue. But the government does not and I would suggest the public do not want it either." |
The system - welcomed by local authority umbrella group Cosla - will require a new network of enforcement officers to police the licenses and monitor the impact of pubs and off sales on communities in terms of anti-social behaviour. |