MSP urges support of pub licence price hike

Published on Saturday 19 January 2008 19:14

A MINISTER will this week appeal to MSPs not to block a Scottish Government move to impose big increases in the cost of alcohol licences for pubs.

At present, all pubs pay an initial fee of 172 for a three-year licence, with further fees for renewals.

But some could pay up to 2,000 in regulations for which Justice Secretary Kenny MacAskill will seek MSPs' approval this week.

Tory MSP Bill Aitken, convener of Holyrood's justice committee, has tabled a move to block the increases at the committee's meeting on Tuesday. And the drinks trade has accused ministers of failing to justify the "excessive" increases.

But MacAskill will argue the new fees will end years of the licensing system being subsidised by the taxpayer.

Fee income at present covers only 63% of the licensing system's running costs and the rest is met from other council resources.

"We are in danger of opting for a bargain-basement licensing system that doesn't meet the needs of Scotland," the minister said.

"I believe it's simply wrong that the taxpayer is having to subsidise the cost of those who profit from the sale of alcohol and I don't think it should continue."

He added: "I have heard all the complaints about us doubling fees and that's simply not true.

"Some parts of the licensed trade have set out to protect their profits under the guise of complaining that fees are too high.

"The fees proposed are fair and reasonable to both the trade and to local authorities."

Under the new system, licensing boards will be allowed to charge businesses applying for a licence to sell alcohol up to 2,000.

The increases form part of major overhaul of the licensing system.

The new fee system will create a banding system based on the rateable value of pubs, clubs and other licensed premises.

At the lower end of the scale – premises with a rateable value of up to 11,500 – there will be a maximum application fee of 800, plus a maximum annual fee of 220.

But for premises with a rateable value above 14,000, the maximum licence application fee is up to 2,000.

The Scottish Beer and Pub Association said in evidence to MSPs: "Scotland's licensed and hospitality industries are more than willing to pay the costs of the licensing system in Scotland, where these costs are transparent and evidenced, but we do not believe the current proposed fee levels meet this requirement.

"Scotland's licensed industry isn't asking for special treatment, or a government subsidy in offsetting the costs of licensing reform.

"All we ask is that the licensing fees are not set at excessive levels, which haven't been justified."