An independent review of the liquor licensing system in Northern Ireland has concluded that it restricts competition and risks stifling innovation in the market.
The review was carried out by a team from the University of Stirling, having been commissioned by Stormont’s Department for Communities.
It found particular problems with Northern Ireland’s surrender principle. This is a system whereby a new liquor licence can only be granted from an existing business which is giving up or “surrendering” their own.
The review says: “Therefore, while the surrender principle protects existing pub licensees in a challenging environment, it does not appear to support growth in the pub sector as a whole.”
William Mayne, chair of SIBA in Northern Ireland, said: “This detailed review is clear that reform of the licensing system is well overdue and the current surrender principle is failing to protect Northern Ireland’s pubs. Instead it acts as a barrier to innovation and diversity and reduces consumer choice.
“Consumers want to be able to access a local beer made by a local small brewery, but the current system prevents the vast majority of NI’s brewers from selling their beers locally. This means that 99% of beer sold in Northern Ireland is imported and local breweries are shut out.”
He added: “The review heard from all stakeholders and has proposed many sensible recommendations to reduce the barrier to entry for new market entrants, ultimately creating a more diverse and vibrant hospitality industry better for all of society.
“We hope that the minister quickly spells out a path to reform which will enable small breweries to reach their potential and meet consumer choice.”
