Northern Ireland’s Department for Communities has rejected a recommendation to update the country’s unique licensing system.
Notably, this means the ‘surrender principle’ will stay in place. Under this system, a new pub or off-licence can only be granted a liquor licence if an existing licence is ‘surrendered’.
Responding to an independent review of Northern Ireland’s licensing system, critics commented that the principle stifled the growth of the market, which acted against the interest of brewers, licensees, and consumers.
The Department for Communities turned down a recommendation to establish a new Northern Ireland Licensing Authority (NILA), to “enhance accessibility and consistency in the licensing system, monitor outcomes, and administer key elements of a reformed system”.
“The creation of a NILA would have significant resource requirements,” said the Department, in its repor, “and as envisaged
by the authors could result in significant duplication of the functions already carried out by the Department and our delivery partners in the administration and enforcement of the liquor licensing regime…
“Any NILA would need to be self-sustaining, which would result in significantly higher costs for licence applications and would likely require a levy to be charged. Given the precarious financial position many in the hospitality sector currently find themselves, in, and the significant contribution the sector makes to the tourism industry and the wider economy here, the Department would not be supportive of adding any additional financial burden to those businesses.”
The Society of Independent Brewers and Associates (SIBA) said the Department had shut the pub door on beer drinkers and Northern Ireland’s independent breweries.
“Drinkers want to enjoy a locally-produced beer in our pubs, but the system prevents the vast majority of NI’s brewers from selling their products locally,” said SIBA’s Northern Ireland chair, William Mayne. “Instead, 99% of all beer in NI is imported, and local breweries are shut out.
“The independent and detailed review was clear that the system including the surrender principle acts as a barrier to innovation and diversity, and reduces consumer choice.
“This was the Minister’s opportunity to explore these ideas further, including examining independently their impacts and costs and creating a more diverse and vibrant hospitality sector. Instead, consumers and local breweries will continue to get a raw deal.”
